DEPARTMENT  OF  COMMERCE  AND  LABOR 

BUREAU  OF  MANUFACTURES 

A.  H.  BALDWIN,  Chief 

SPECIAL  CONSULAR  REPORTS— No.  48 


RAILWAY  SITUATION 
IN  CHINA 


By 

GEORGE  E.  ANDERSON 

Consul  General  at  Hongkong 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 
IS  11 


LETTER  OF  SUBMITTAI. 


Department  of  Commerce  and  Labor, 

Bureau  of  Manufactures, 

'W a^hington^  June  1911. 

Sir:  I have  the  honor  to  submit  herewith  a report  by  Consul 
General  George  E.  Anderson,  of  Hongkong,  on  the  railway  situ- 
ation in  China.  The  report  embraces  a general  survey  of  railway 
conditions  in  that  country,  a detailed  study  of  the  five  principal 
groups  into  which  the  lines  of  the  Empire  may  be  divided,  and  a 
statement  of  the  opportunities,  present  and  future,  for  the  sale  of 
xVmerican  equipment  and  material.  The  presentation  of  this  infor- 
mation is  believed  to  be  timely,  in  view  of  the  participation  of 
American  financiers  in  the  recent  $30,000,000  Hukuang  loan  secured 
by  the  Chinese  Government,  the  $50,000,000  Government  loan  just 
agreed  upon,  and  the  probable  participation  in  a further^  loan  of 
$20,000,000  which  will  be  made  in  case  certain  railroad  plans  are 
carried  out. 

Respectfully,  A.  H.  Baldwin, 

Chief  of  Bureau. 

To  Hon.  Charles  Nagel, 

Secretary  of  Commerce  and  Labor. 


3 


Digitized  by  the  Internet  Archive 
in  2017  with  funding  from 
Columbia  University  Libraries 


https://archive.org/details/railwaysituationOOunit 


RAILWAY  SITUATION  IN  CHINA„ 


GENERAL,  SURVEY  OF  CONDITIONS. 

According  to  the  best  infoi’ination  available,  which  represents  some 
months  of  correspondence  with  various  portions  of  the  country  as 
well  as  official  confirmation  of  lists  thus  prepared,  the  Empire  of 
China  now  has  about  5,404  miles  of  railway  in  actual  operation  or  'so 
far  advanced  in  construction  that  operation  is  a matter  of  a few 
months’  time. 

There  is  in  course  of  actual  construction  and  more  or  less  advanced 
toward  completion  and  operation,  a total  of  about  1,702  miles,  some 
of  which  will  come  into  operation  within  a few  months  and  some  of 
which  probably  will  not  be  completed  for  several  years.  There  is 
projected,  with  more  or  less  definite  plans  of  construction,  surveyed 
or  unsurveyed,  authorized  by  the  Chinese  Government  or  not,  a total 
of  13,434  miles.  The  latter  fig:ure  represents  principally  the  lines  for 
which  plans  have  been  made  and  surveys  ordered  by  the  Chinese 
Government,  but  includes  also  some  roads  projected  by  local  capi- 
talists in  various  portions  of  China,  lines  for  which  concessions  have 
been  asked  and  in  some  cases  obtained  of  the  Chinese  Government 
by  foreign  interests,  and  all  the  various  local  railway  enterprises, 
some  of  which  are  of  more  or  less  indefinite  backing,  but  many  of 
which  will  probably  be  the  railways  next  constructed  in  the  country. 

The  preceding  figures  are  based  upon  lists  given  later  in  this  report 
of  railways  in  operation  or  under  construction  and  those  surveyed 
or  seriously  projected.  ^Adiile  these  lists  are  probably  faulty  in  some 
respects  as  a result,  first,  of  indefinite  and  ill-defined  plans  and  un- 
certain construction  work,  and,  second,  of  differences  in  nomenclature 
and  romanization  of  Chinese  names  in  the  seA^eral  provincial  dialects 
or  languages,  they  are  offered  as  the  best  information  obtainable  at 
this  time  from  official  and  other  sources. 

PROGRESS  OF  WORK  DURING  PAST  YEAR. 

In  spite  of  great  projects  and  many  promising  features,  the  rail- 
way situation  in  China  at  the  beginning  of  1911  does  not  presage  the 
immediate  development  of  the  country  along  modern  lines.  Much 
has  been  accomplished,  but,  in  spite  of  the  fact  that  the  interest  of  the 
entire  world  has  been  centered  to  an  unusual  degree  upon  the  build- 
ing of  railroads  in  China,  that  both  Chinese  and  foreign  statesmen 
well  understood  that  the  first  requirement  in  the  development  of  the 
country’s  resources  and  its  advancement  is  railroad  construction,  and 
(hat  railway  systems  aggregating  more  than  13,400  miles  have  been 
planned,  of  which  5,000  miles  have  been  surveyed  in  a more  or  less 
definite  and  final  manner,  the  construction  during  1910  of  railways  of 

5 


6 


RAILWAY  SITUATION  IN  CHINA. 


all  classes,  including  extensions  of  existing  lines,  further  work  on 
lines  already  commenced  and  operated  to  a certain  degree,  and 
entirely  new  lines,  has  not  exceeded  500  miles,  and  at  least  part  of 
this  construction  must  be  credited  to  the  previous  year. 

Of  this  construction,  about  275  miles  is  accounted  for  in  the  work 
on  the  Tientsin-Pukow  system,  of  German  ownership.  The  Ichang- 
Wanhsien  line  and  other  Yangtze  Valley  lines  account  for  about  40 
miles ; the  extension  of  the  Canton-Hankow  system  north  from  Can- 
ton, including  branch  lines  to  various  points,  and  the  extension  of 
the  same  system  south  near  Changsha,  including  lines  to  mines,  80 
miles;  the  Canton-Kowloon  Eailway,  the  Sunning  Railway  exten- 
sion, and  work  on  the  Amoy-Changchow  and  other  coast  lines,  75 
miles;  the  extension  of  the  French  Railway  from  the  south  to  Yun- 
nan, 60  miles;  and  apparently  about  60  miles  of  new  road  were  con- 
structed in  the  Manchuria  country  during  the  year.  Practically 
none  of  this  is  actually  new  work,  most  of  it  being  the  continuation 
of  work  commenced  in  other  years. 

The  fact  is  that  while  plans  for  new  railways  in  China  are  com- 
mon, actual  development  is  proceeding  slowl3^  New  plans  are  car- 
ried out  Avith  difficulty,  modified,  or  abandoned.  For  this  there  are 
seA^eral  causes,  most  of  which  appear  reducible  to  one  or  two  cir- 
cumstances— either  the  people  are  unwilling  that  other  nations 
should  furnish  the  money  to  build  the  roads,  and  have  not  the 
money  themselves,  or,  if  willing  to  borrow  from  abroad  for  such 
work,  other  considerations  have  so  far  prevented  the  placing  of  the 
necessary  loans  under  admissible  conditions  and  circumstances. 

FINANCIAL  PROSPECTS  UNFAVORABLE. 

While  these  and  other  influences,  and  the  general  poA’erty  of  the 
country,  are  preventing  the  realization  of  these  great  enterprises, 
there  is  little  if  any  actual  encouragement  for  the  Chinese  public  to 
invest  what  funds  they  can  raise  for  such  purposes.  Of  the  greater 
systems  under  Chinese  control,  practically  none  are  paying  their  way, 
all  things  considered. 

In  connection  with  the  retirement  of  a Chinese  official  last  year  it 
was  stated  that  losses  on  the  several  principal  roads  the  previous 
year  had  been  approximately:  Shanghai-Nanking,  1,000,000  taels; 
Chengting-Taiyuen,  600,000  taels;  Tan-Ching,  100,000  taels;  Pien- 
liang-Loyang,  600,000  taels;  Peking-Kalgan,  150,000  taels;  West 
Mausolea,  15,000  taels.  The  Pinghsiang  line  realizes  a profit,  and 
the  Peking-Mukden  and  Peking-Hankow  lines  bring  in  about  11,- 
000,000  and  9,600,000  taels,  respectively.  For  these  bvo  lines,  after 
deducting  the  expenses  and  interest,  there  is  a net  profit  of  9,000,000 
taels,  of  which,  after  making  up  the  above  deficiencies,  is  left  about 

6.500.000  taels.  The  record  for  1910  seems  to  be  about  the  same. 

The  Ministry  of  Posts  and  Communications  has  memorialized  the 

Throne  as  to  the  Shanghai-Nanking  Raihvay,  that  the  income  of  this 
line  in  the  last  year  was  about  1,796,000  taels.  The  contra  was 

1.214.000  plus  1,662,000  taels  interest,  thus  showing  a debit  balance  of 

1.080.000  taels.  Of  the  lines  reported  as  realizing  a profit,  it  is 
further  to  be  considered  that  deterioration  has  not  been  alloAved  for, 
and  this,  in  the  case  of  the  Peking-Hankow  line,  is  said  to  be  particu- 
larly important.  The  Japanese  lines  in  Manchuria  have  been  pay- 
ing dividends  of  6 per  cent  and  all  interest  charges. 


EAILWAY  SITUATION  IN  CHINA. 


7 


CHINESE  RAILWAY  ENTERPRISES. 

However,  most  of  the  smaller  lines,  particularly  along  the  lower 
coast,  are  paying  their  way,  and  some  are  realizing  satisfactory 
profits.  These  lines  are  being  multiplied,  and  even  some  of  the  larger 
plans  are  being  carried  out.  In  several  portions  of  the  Empire 
Chinese  enterprise  and  Chinese  capital,  without  the  assistance  of 
foreigners,  have  accomplished  something  real  and  tangible.  In  the 
far  north  the  Peking-Kalgan  Kailway  extension  is  an  example  of 
what  can  be  done  in  this  line.  In  the  far  south  the  Sunning  Rail- 
way, a small  railway,  but  one  completely  Chinese  in  capital,  con- 
struction, and  management,  is  another  example.  The  work  of  the 
German  interests  in  Shantung  indicates  what  foreig-n  interests  would 
do  if  allowed  to  work.  The  Canton-Kowloon  Railway  is  an  example 
of  what  Chinese  and  foreign  combinations  are  doing,  the  foreign 
section  being  complete  and  the  Chinese  section  in  the  course  of  com- 
pletion. Work  on  the  great  north  and  south  system  of  the  Canton- 
IlankoAV  line  is  exceedingly  slow,  even  under  official  urging.  Con- 
struction upon  the  east  and  west  system  of  the  Hankow-Chengtu 
line  is  more  promising,  though  the  immediate  future  is  beset  with 
rumor.  Work  on  the  east  and  west  system  farther  north  and  cross- 
ing Shensi  is  practically  nil,  and  little  is  promised  for  the  current 
year. 

In  spite  of  the  comparatively  small  volume  of  actual  work,  plans 
are  numerous  and  without  limit  in  their  scope.  Among  lines  pro- 
jected by  the  Government  are  two  over  800  miles  in  lenglh,  one  over 
1,200  miles,  and  another  about  2,000  miles.  These  are  of  great  prac- 
tical importance  to  both  Europe  and  Asia,  for  they  mean  actual  rail- 
way service  between  London  and  Peking,  for  example,  in  less  than 
10  days,  or  from  London  to  Hongkong,  all  by  rail  except  the  English 
Channel,  in  less  than  II  days.  The  lines  are  so  vast,  individually 
and  in  the  aggregate,  that  they  appear  mere  dreams  of  the  future, 
whereas  they  are  lines  the  early  realization  of  which  is  demanded  by 
the  political  and  economic  position  of  China.  Incidentally,  many 
advantages  the  United  States,  even  the  Pacific  coast,  is  supposed  to 
have  in  its  proximity  and  direct  steamer  connections  with  China 
are  disappearing  in  the  increasingly  rapid  communication  Europe 
has  with  all  portions  of  China  and  Asia  by  railways. 

GREAT  SYSTEIMS  PLANNED. 

The  Chinese  Government,  under  the  administration  of  Tang  Shao 
Yi  in  the  Railway  and  Communications  Department,  planned  a com- 
plete system  of  railways,  connecting  the  various  commercial  centers 
of  the  Empire.  This  plan  includecl  the  construction  of  one  or  more 
railways  from  the  present  Peking  Railway  system  to  connect  with 
the  Trans-Siberian  Railway  near  Lake  Baikal  or  farther  west,  and 
thus  cut  off  about  two  days  in  the  journey  from  Europe  to  Peking 
and  points  south;  a railway  into  Mongolia,  another  into  Tibet,  and 
still  another  into  Kokonor.  Tang  Shao  Yi  urged  the  construction 
of  the  system  across  Shansi  and  Shensi,  the  system  parallel  to  the 
Yangtze  River,  the  connection  between  the  Yangtze  and  Yunnan, 
the  Canton-Hankow  line — in  short,  he  planned  railways  where  they 


8 


RAILWAY  SITUATION  IN  CHINA. 


must  some  day  come.  The  realization  of  these  plans  is  problemati- 
cal. Nevertheless,  the  trend  of  events  seems  to  indicate  that  they 
will  be  pushed  to  realization  as  rapidly  as  conditions  permit. 

GOVERNMENT  RAILWAY  POLICY. 

One  of  the  chief  features  of  the  present  railway  policy  of  the 
Chinese  Government  seems  to  be  the  disposition  to  take  over  all 
railway  enterprises  which  have  been  undertaken  by  private  capital, 
but  which  have  been  unduly  delayed  in  execution.  For  example,  the 
recent  troubles  in  the  Chekiang  Railway  Co.  led  the  Government  to 
step  in  and  announce  that  it  would  take  over  the  entire  enterprise. 
The  company  is  reported  to  have  sent  a representative  to  Peking 
to  change  the  determination  of  the  Government,  but  at  last  accounts 
the  latter  was  adhering  to  its  decision.  Similar  action  has  been 
taken  in  a number  of  cases,  and  it  has  been  announced  by  the  Board 
of  Communications  at  Peking  that  all  railway-building  privileges 
granted  to  private  interests  must  be  put  into  operation  during  the 
jiresent  year  or  the  Government  will  take  them  over.  However,  the 
Chinese  gentrymen  interested  in  building  roads  with  Chinese  capital 
find  it  difficult  to  raise  the  money.  Unfortunately,  the  fact  that 
some  of  the  railways  already  in  operation  have  been  ill  managed  or 
have  been  operated  under  conditions  that  render  it  impracticable  to 
secure  fair  returns  on  the  Chinese  capital  invested  in  them  is  a con- 
stant discouragement.  While  the  record  of  actual  construction  in 
1910  is  not  very  promising,  considering  the  railways  planned  and 
needed,  the  prospect  for  1911  is  still  less  promising.  Almost  no  new 
enterprises  have  been  inaugurated  or  are  about  to  be  inaugurated, 
and  enterprises  finished  in  the  past  year  or  about  to  be  finished  will 
have  little  or  no  part  in  the  current  year’s  record. 

That  present  conditions  in  the  railway  situation  of  China  can  con- 
tinue indefinitely  is  impossible.  The  pressure  from  the  people  in 
favor  of  railway  construction,  taking  the  country  as  a whole,  is  grow- 
ing. The  demands  of  trade  in  the  interior  are  becoming  more 
pronounced  in  favor  of  rapid,  safer,  and  better  communication. 
Throughout  China,  particularly  in  the  districts  accessible  to  coast 
ports,  improved  means  of  communication  are  being  brought  into 
use,  such  as  motor  and  steam  boat  services  on  the  rivers  and  canals, 
and  in  some  localities  improved  roads  and  automobile  service.  These 
improvements  are  accentuating  the  need  and  the  advantage  of  rail- 
ways, and  public  sentiment  is  slowly  but  surely  preparing  for  great 
railway  development, 

GENERAL  GROUPING  OF  LINES. 

For  convenience  in  examining  the  situation  in  China,  the  railways, 
present  and  prospective,  may  be  divided  into  five  divisions  or  sys- 
tems. The  first  division  includes  the  railways  about  Peking  and 
extending  into  Manchuria  to  the  northeast  and  into  Mongolia  and 
toward  the  northwest.  The  second  division  includes  the  railways  in 
the  country  between  Peking  and  the  Yangtze  Valley,  including  par- 
ticularly the  German  lines  in  Shantung  Province  and  to  the  south, 
and  the  lines  projected  both  north  and  south  connecting  with  the 
Yangtze  River  and  east  and  west  connecting  the  north  and  south 


EAILWAY  SITUATION  IN  CHINA. 


9 


lines  and  extending  to  the  sea.  A third  division  may  be  made  of  the 
railways  of  the  Yangtze  Valley.  A fourth  includes  the  railways  in 
and  about  the  Hongkong-Canton  district  and  those  in  the  country 
between  that  district  and  the  Yangtze  Valley  and  in  the  Provinces 
of  Kwangtung  and  Kwangsi  tributary  in  a trade  way  to  Hongkong 
and  Canton.  The  fifth  division  includes  railways  in  the  border  coun- 
try between  these  ocean-trade  districts  and  French  China,  Burma, 
India,  and  Tibet.  These  divisions  merely  represent  more  or  less 
general  movements  of  railway  organization,  construction,  and  opera- 
tion. 

MANCHURIAN  SYSTEM. 

Of  the  5,404  miles  of  railway  actually  in  operation  in  China,  2,433 
miles  are  in  what  may  be  termed  the  Manchurian  division.  About 
two-thirds  of  the  roads  operated  are  Japanese  and  Russian.  In  this 
portion  of  China  railway  construction  has  been  hastened  in  recent 
years  for  a number  of  reasons.  The  general  aspect  of  the  railway 
situation  in  Manchuria  has  changed  comparatively  little  in  the  past 
year. 

The  Kirin-Hoiryong  line  is  held  in  abeyance  until  the  completion 
of  the  Kirin-Changchun  (Kuangchengtzu)  line.  It  is  expected  that 
the  latter  line  will  be  in  operation  by  September  of  the  current  year. 
During  1910  work  was  continued  with  little  interruption,  and  on  the 
whole  it  has  been  successful.  The  line  is  constnicted  by  Chinese  and 
Japanese  interests,  each  furnishing  half  the  capital;  but  the  railway 
will  have  comparatively  little  traffic  until  the  Hoiryong  extension 
via  Kirin  and  Omoso  to  the  Chientao  district  and  the  banks  of  the 
Tumen  is  built.  A branch  line  will  run  from  there  to  the  treaty  port 
of  Hungchun,  and  Japanese  owners  of  connecting  lines  plan  to  con- 
nect it  with  their  harbor  of  Chyongjin  in  northern  Korea  (Chosen). 

During  1910  surveys  of  the  Kalgan-Suiyuan-Kweihuangcheng  line 
were  made  under  the  direction  of  the  Chinese  Government  and  work 
is  being  prosecuted  with  some  rapidity.  The  railway  is  to  open  up 
a part  of  China  now  practically  unknown  to  the  outside  world.  It 
is  promised  that  the  road  will  be  running  as  far  as  Tienchen  by  the 
spring  of  1912.  It  is  planned  to  extend  the  line  to  Urga  and  Kiahtka 
and  it  may  therefore  form  a link  between  Peking  and  the  Trans- 
Siberian  Railway,  which  will  reduce  the  transit  period  between 
Europe  and  the  Chinese  capital  by  about  two  days’  travel. 

KALGAN-SUIYUAN  LINE. 

Within  the  past  few  weeks  (April,  1911)  it  has  been  announced 
by  the  Government  at  Peking  that  the  Kalgan-Suiyuan  line  is  to  be 
extended  by  the  Government  within  five  years  to  Ilifu,  the  capital 
of  China’s  most  distant  Province  on  the  Russian  frontier,  a distance 
of  about  2,000  miles.  This  enterprise  was  first  projected  by  Tang 
Shao  Yi,  and  was  seriously  considered  about  the  time  of  the  com- 
pletion of  the  Peking-Kalgan  line.  The  enormous  expense  of  the 
undertaking,  however,  caused  the  enterprise  to  be  held  in  abeyance. 
Recent  events  have  led  to  the  present  determination  to  build  the  line 
as  soon  as  possible.  The  expense,  of  course,  will  be  enormous,  but 
there  is  strong  probability  of  its  commercial  success  from  the  be- 
ginning. There  is  heavy  caravan  traffic  between  North  China  and 
101380°— 11 2 


10 


RAILWAY  SITUATION  IN  CHINA. 


the  country  in  question,  which  is  known  as  the  “ Xew  Dominion,” 
and  the  possibility  of  diverting  much  of  the  tea  traffic  with  Eussia 
to  this  route  is  promising.  Possibilities  of  developing  grain  country 
also  are  immense.  However,  the  line  would  probably  not  be  justified 
at  this  time  except  as  a governmental  undertaking.  Up  to  the  pres- 
ent, it  does  not  appear  that  this  enterprise  is  to  supersede  the  propo- 
sition to  extend  the  Kalgan  line  to  Kiahtka  via  Urga. 

The  ultimate  plan  of  the  Kalgan- Suiyuan  line  is  for  it  to  connect 
with  a north  and  south  line  bisecting  Shansi  Province,  though  at 
latest  report  there  was  no  definite  work  being  done  on  this  road. 

Chinese  merchants  are  projecting  a light  railway  from  Harbin  to 
Shuihue  and  Huilun,  about  150  miles,  for  which  5,000,000  taels  are 
being  raised.  The  native  press  reports  that  of  this  sum  3,000,000 
taels  has  been  pledged  by  two  native  banks,  and  merchants  are  to 
furnish  the  balance. 

Aside  from  work  commenced  before  present  conditions  developed 
there  is  little  actual  advancement  promised  in  this  portion  of  the 
country.  Nevertheless  it  is  here  that  railway  enterprise  is  likely  to 
have  its  best  returns  both  to  the  investor  and  to  the  country. 

SUMMARY  OF  SYSTEM. 

In  the  Manchurian  system  the  mileage  in  operation  is  2,433,  under 
construction  338,  and  surveyed  or  projected  4,760.  A list  of  the  rail- 
ways in  operation  or  projected,  with  a brief  statement  regarding 
them,  follows: 

IN  OPERATION  OR  UNDER  CONSTRUCTION. 

Kirin— Hoiryiing ; Section  of  Manchurian ; 78  miles ; under  construction  by 
Japanese-Chinese  organization  ; will  be  in  operation  in  September,  1911.  Branch 
will  run  to  Hungchun,  and  it  may  be  connected  with  Japanese  lines  in  Korea 
( Chosen ) . 

Peking-Tientsin-Tangku-Hsinminfu  (Chinese)  : Gauge,  4 feet  8J  inches; 
484  miles;  Chinese  Imperial  Railway  Administration  of  North  China  (com- 
bined Chinese  and  British  capital). 

Hsinminfu-Mukden  (Chinese)  : Gauge,  4 feet  8^  inches;  38  miles;  purchased 
from  Japanese;  Chinese  Imperial  Railway  Administration  of  North  China 
(combing  Chinese  and  British  capital). 

Koupangtzu-Newchwang  (Chinese);  Gauge,  4 feet  8i  inches;  57  miles; 
Chinese  Imperial  Railway  Administration  of  North  China  (combined  Chinese 
and  British  capital). 

Peking-Tungchou  (Chinese)  ; Gauge,  4 feet  8J  inches;  12  miles;  Chinese 
Imperial  Railway  Administration  of  North  China  (combined  Chinese  and 
British  capital). 

Peklng-Lukoukhiao  (Chinese)  ; Gauge,  4 feet  8J  inches;  Chinese  Imperial 
Railway  Administration  of  North  China  (combined  Chinese  and  British  capital). 

Peking-Kalgan  (Chinese)  : Gauge,  4 feet  8J  inches;  125  miles;  Chinese  Im- 
perial Railway  Administration  of  North  China  (combined  Chinese  and  British 
capital).  In  operation  to  Kalgan;  now  being  extended  to  Kweihuangcheng  in 
Shensi  Province. 

Kalgan-Suiyuan  Railway : Preliminary  surveys  were  made  in  1910  under 
orders  of  the  Chinese  Imperial  Railway  Administration  of  North  China,  and 
the  route  will  probably  be  via  Tatung.  Trains  are  expected  to  run  as  far  as 
Tienchen,  a distance  of  50  miles,  in  the  spring  of  1912. 

Kaopaitien-Hsiling  (Chinese)  ; Gauge,  meter;  36  miles;  light  railway  to 
Imperial  Tombs;  Chinese  Imperial  Railway  Administration  of  North  China 
t combined  Chinese  and  British  capital). 

Dalny-Kuanchengtzu  (Japanese)  ; Gauge,  4 feet  82  inches;  433  miles;  line 
from  Dalny  to  Suchiatun  will  be  doubled  (236  miles)  ; South  Manchuria  Rail- 
way Co. ; converted  from  3 foot  6 inch  gauge ; Japanese  South  Manchurian 
Railway  system. 


RAILWAY  SITUATION  IN  CHINA. 


11 


Kuanchengtzii-Changchuu  (Japanese):  Gauge,  4 feet  8i  inches;  5 miles; 
to  connect  with  Chinese  Eastern  Railway  (Russian)  ; South  Manchuria  Rail- 
way Co.;  converted  from  3 foot  6 inch  gauge  in  May,  1908;  Japanese  South 
Manchurian  Railway  system. 

Nankuanling-Port  Arthur  (Japanese):  Gauge,  4 feet  8J  inches;  30  miles; 
South  Manchuria  Railway  Co. ; converted  from  3 foot  6 inch  gauge  in  May, 
1908;  Japanese  South  Manchurian  Railway  system. 

Tashihchiao-Yinkou,  Newchwang  connection  (Japanese)  : Gauge,  4 feet  8J 
inches ; 13  miles ; South  Manchuria  Railway  Co. ; converted  from  3 foot  6 inch 
gauge  in  May,  1908;  Japanese  South  Manchurian  Railway  system. 

Suchiatun-Fushun  (Japanese)  ; Gauge,  4 feet  8^  inches;  .37  miles;  South 
Manchuria  Railway  Co. ; converted  from  3 foot  6 inch  gauge  in  May,  1908 ; 
Japanese  South  Manchurian  Railway  system. 

Tafengshen-Liushutun  (Japanese):  Guage,  4 feet  8J  inches;  31  mlies; 
South  Manchuria  Railway  Co. ; converted  from  3 foot  6 inch  gauge  in  May, 
1908;  Japanese  South  Manchurian  Railway  system. 

Yentai-Taikang  (Japanese)  : Gauge,  4 feet  8^  inches;  10  miles;  South  Man- 
churia Railway  Co. ; converted  from  3 foot  6 inch  gauge  in  May,  1908 ; Japanese 
South  Manchurian  Railway  system, 

Antung-Penchihu-Mukden  (Japanese);  Gauge,  2 feet  6 inches;  171  miles; 
light  railway  under  conversion  to  4 foot  8i  inch  gauge;  concession;  probably 
completed  in  1913. 

Kuanchengtzu-Harbin,  etc.  (Russian):  Gauge,  5 feet;  1,077  miles;  Chinese 
Eastern  Railway ; includes  lines  east  and  west  to  Russian  frontier. 

SURVEYED  OR  PROJECTED. 

Chinchowfu-Aigun  Railway  (British- American)  ; The  preliminary  agreement 
for  this  railway  was  signed  in  January,  1910,  for  American  loan  and  British 
construction ; the  length  of  the  line  will  be  750  miles. 

Hsinminfu-Fakumen  (Chinese):  Gauge,  4 feet  81  inches;  420  miles;  pro- 
posed extension  via  Taoan  to  connect  with  Chinese  Eastern  Railway  at  Tsitsihar. 

Kirin  (Hoiryong)  Railway:  This  line  will  be  240  miles  long,  and  is  to  be 
undertaken  on  the  completion  of  the  Kirin-Changchun  line,  probably  in  the  fall 
of  1911;  surveys  have  been  completed. 

Shansi  Railway : Line  of  about  450  miles  projected  by  the  Board  of  Com- 
munications bisecting  the  Province  of  Shansi,  north  and  south ; to  pass  through 
Tatung  and  there  connect  with  the  east  and  west  extension  of  the  Kalgan 
Railway. 

Suiyuan-Ilifu  Railway : Announcement  made  by  Chinese  Government  or  in- 
tention to  extend  Kalgan-Cuiyuan  line  to  Ilifu  Russian  border,  the  whole  to  be 
completed  in  five  years;  Chinese  Government  enterprise;  about  2,000  miles. 

Suiyuan-Kiahtka  line : Proposed  extension  of  the  Peking-Kalgan  Railway ; 
about  750  miles;  some  survey  work  being  done,  but  financing  of  the  system  is 
uncertain;  completion  is  promised  in  five  years. 

Harbin-Hsuihue  and  Huilun  (Chinese)  : Light  railway  of  about  150  miles; 
preliminary  surveys  in  progress. 

SHANTUNG-YANGTZE  SYSTEM. 

Some  of  the  projected  railways  from  Peking  into  the  western  and 
northwestern  country  have  a direct  relation  with  lines  in  operation 
and  projected  immediatel}'-  south  of  the  imperial  capital.  Of  imme- 
diate importance,  however,  is  the  recent  construction  in  Shantung 
and  neighboring  Provinces,  the  most  successful  wmrk  in  Chinese 
railway  fields  in  1910  being  in  this  part  of  the  Empire.  In  this 
great,  rich  section  of  China,  in  which  the  successful  long-distance 
railways  have  heretofore  been  constructed,  several  railways  were 
brought  to  successful  completion  and  into  efficient  operation. 

During  1910  the  most  notable  lines  completed  were  portions  of  the 
great  German  system  in  Shantung,  which  extends  from  Tientsin  to 
the  Yangtze  River,  and  is  generally  known  as  the  Pukow-Tientsin 
Railway.  The  southern  portion  of  the  system  is  in  operation  from 
Pukow,  opposite  Nanking  on  the  Yangtze,  to  Linghwaikwan,  a dis- 


12 


RAILWAY  SITUATION  IN  CHINA, 


tance  of  about  94  miles.  It  is  expected  that  the  line  will  be  com- 
pleted and  in  operation  to  Hsuchowfu  by  the  end  of  the  current 
year. 

The  northern  sections  of  this  system  have  been  completed  and  put 
into  operation  as  follows:  The  Tientsin-Tsinan  lines  have  been  in 
operation  since  November,  1910;  the  track  to  the  south  is  complete  to 
Hsuchowfu,  but  at  present  the  Yellow  River  is  crossed  only  by  a 
ferry.  Work  on  the  difficult  enterprise  of  bridging  this  great  stream 
is  proceeding  steadily,  but  it  will  be  two  years  before  trains  can  be 
run  across  the  bridge.  In  the  construction  of  this  road  there  have 
been  and  are  yet  to  be  met  many  engineering  difficulties,  the  most 
serious  being  those  relating  to  the  handling  of  flood  Avaters  from 
the  river  and  canal  systems  crossed  by  the  line.  These  flood  waters 
in  recent  years  have  caused  hundreds  of  thousands  of  deaths  in  the 
flat  country  the  road  traverses.  Excepting  the  Yellow  River  bridge, 
it  is  expected  that  within  a year  the  entire  line  will  be  completed, 
thus  giving  the  Yangtze  Valley  connections  Avith  the  sea  at  Tsingtau 
and  opening  up  a great  territory  betAveen  the  Peking-Hankow  line 
and  the  sea. 

The  completion  of  this  railway  Avill  have  a marked  influence  in 
preventing  or  at  least  in  modifying  the  great  famines  caused  by  the 
floods  in  this  portion  of  China,  which  have  inAmked  the  sympathies 
and  the  assistance  of  the  Avorld,  particularly  the  people  of  the  United 
States. 

PLANS  FOR  AIIDDLE  NORTHERN  TERRITORY. 

In  the  middle  northern  territory  there  are  a number  of  ambitious 
plans  for  lines  running  to  the  west,  one  being  to  connect  the  lines 
now  running  or  rather  under  construction  and  projected  into  the 
ProAunce  of  Kansu,  with  a series  of  lines  running  into  Avhat  is  known 
as  the  “ neAv  territory,”  the  country  toward  the  Russian  border. 

Under  a concession  formerly  held  by  Belgians,  but  now  worked  by 
Chinese,  a line  is  slowly  being  constructed  from  Honan,  a city  of 
Honan  Province,  to  Sianfu,  the  capital  of  Shensi  Province,  as  a part 
of  the  Peking-Hankow  system.  In  February,  1911,  coolies  were  at 
Avork  on  the  embankment  of  this  line  a few  li  west  of  Sinan,  a small 
city  about  20  miles  from  Honan.  Three  years  have  been  occupied  in 
the  Avork  so  far  done.  The  correspondent  estimates  that  if  the  Avork 
progTesses  at  the  present  rate  the  line  of  embankment  will  be  com- 
pleted to  Sianfu,  in  Shensi,  in  37  years.  It  is  understood  that  the 
com25any  expects  to  push  the  construction  of  the  line  as  soon  as 
financial  arrangements  can  be  made.  Its  last  reported  financial 
operation  Avas  the  placing  of  a loan  of  5,000,000  taels  with  Chinese 
banks  in  May,  1910. 

The  Board  of  Communications  at  Peking  has  jilanned  an  exten- 
sion of  this  line  to  Lanchow,  the  capital  of  Kansu  Province,  and  the 
survey  for  this  extension  is  to  be  completed  in  1911.  The  Board  of 
Communications  has  also  announced  its  intention  of  extending  this 
line  from  Lanchow  to  Ilifu,  on  the  farthest  frontier  of  the  Empire, 
the  terminus  of  the  proposed  extension  of  the  Kalgan-Suiyuan  line, 
about  1,250  miles  distant.  Surveys  for  this  great  extension  have 
been  ordered  to  be  commenced  immediately.  While  this  great  system, 
connecting  the  frontier  of  the  Empire  with  the  interior  to  the  south- 


RAILWAY  SlTtJATiOlf  IN  CHINA. 


13 


east  as  well  as  with  the  imperial  capital,  appears  to  have  been  de- 
cided upon,  no  definite  plans  for  financing  the  proposition  have  yet 
been  adopted. 

CONSTRUCTING  SMALL,  LINES. 

During  the  year  also  there  has  been  considerable  work  done  in 
connecting  existing  lines  with  coal  and  other  mines  and  in  extending 
the  connections  of  present  lines  in  small  but  necessary  spurs.  A 
notable  feature  of  the  situation  in  this  portion  of  China  is  the  com- 
paratively rapid  development  of  the  desire  for  railways  tributary 
to  the  lines  already  constructed ; that  is,  an  appreciation  of  the 
need,  in  the  development  of  local  industries,  of  close  and  convenient 
connections  with  the  trunk  systems.  This  is  particularly  noticeable 
along  the  coast  above  the  Yangtze  River,  where  a number  of  Chinese 
cities  have  shown  anxiety  to  secure  connections  with  the  Pukow  Rail- 
way and  the  Peking-Hankow  Railway,  and  between  these  railways 
and  the  Grand  Canal.  Several  cities,  notably  Chinkiang,  are  com- 
mencing to  appreciate  the  fact  that  they  must  have  railway  connec- 
tions at  once  or  their  present  position  in  the  trade  of  the  country 
will  be  lost. 

Local  industries,  like  the  salt  industry  in  Kiangsu  Province  and 
various  mines  in  portions  of  the  country  to  the  north,  are  demanding 
and  are  gradually  securing  railway  facilities.  A number  of  these 
small  lines  are  projected  for  connecting  the  existing  lines  and  for 
serving  them  with  many  branches  and  connections.  Among  the  new 
enterprises  of  a serious  sort  are  the  projected  lines  to  connect  the 
Tientsin-Pukow  system  with  the  Grand  Canal,  and  cross  lines  at  the 
Shantung-Kiangsu  border  from  Lintscheng  to  Taierchuang  to  take 
the  place  of  the  projected  Hantschuan-Ihsien  line;  the  Kaomi- 
Ichow  line  to  connect  the  Gennan  neutral  territory  with  southern 
Shantung;  and  the  Kaifong-Haichow  line,  furnishing  an  outlet  at 
the  seaboard  for  the  east  and  west  line  through  Honan  and  pro- 
jected all  the  way  to  the  Russian  border. 

The  Kaifong-Haichow  section  of  the  line  is  delayed  for  lack  of 
money,  and  in  April,  1911,  it  is  reported  that  the  Chinese  projectors 
are  negotiating  with  an  English  concern  for  placing  a loan  for  funds. 
It  is  also  reported  in  the  native  press  that  the  Chinese  projectors 
of  the  Ichow  line  are  negotiating  with  the  Deutsche  Asiatische 
Bank  for  a construction  loan.  Surveys  for  all  the  lines  are  reason- 
ably complete,  considerable  work  upon  them  having  been  done  in 
1910. 

OTHER  ROADS  PLANNED  AND  SURVEYED. 

During  the  past  year  more  or  less  complete  surveys  were  made  for 
the  line  from  Sinyang,  on  the  Peking-Hankow  line  in  the  southern 
portion  of  Honan  Province,  to  Fungyang,  one  of  the  principal  points 
on  the  Tientsin  line  in  Anhwei  Province.  This  line  is  projected 
by  the  Board  of  Communications  at  Peking,  but  no  announcement 
has  been  made  as  to  when  the  work  will  be  pushed  to  completion. 
No  work  has  been  done,  other  than  surveys,  on  the  line  from  Cheng- 
ting,  on  the  Peking-Hankow  line  in  Shantung  Province,  to  Teh- 
chow,  on  the  Tientsin-Pukow  line  on  the  northern  border  of  Shan- 
tung Province.  This  is  the  most  northern  of  the  lateral  lines 


14 


RAILWAY  SITUATION  IN  CHINA, 


projected  by  the  railway  board  in  Peking.  The  proposed  line  to 
connect  Chefoo  with  the  interior  lines  at  Weihsien  seems  to  be  quies- 
cent for  the  time  being. 

The  holders  of  licenses  for  dealing  in  salt  have  decided,  with  Gov- 
ernment permission,  to  build  a railway  from  Icheng,  near  the 
Yangtze,  to  Taichow,  with  a branch  between  Icheng  and  the  salt 
depot  at  Shiherwei,  on  the  Yangtze,  all  in  the  Province  of  Kiangsu. 
This  line  will  cross  the  Grand  Canal  at  Kwachow  and  pass  up  the 
eastern  bank  of  the  canal  as  far  as  Yangchow,  a good-sized  city, 
whence  it  will  go  to  Taichow  via  Hsiennumiao.  The  total  distance 
will  be  48  miles,  which  has  already  been  surveyed.  The  line  will  be 
of  standard  gauge,  and  the  earthwork  will  be  light;  but  there  will 
be  some  important  bridge  work,  one  bridge  of  800  feet  and  another 
of  250  feet  being  necessary,  besides  many  smaller  bridges.  It  is  ex- 
pected eventually  to  extend  the  line  to  Haichow,  at  the  north  end  of 
the  Province. 

Another  railway  was  projected  from  Kwachow  parallel  with  the 
Grand  Canal  to  Tsingkiangpu  and  on  to  Haichow,  but  up  to  the 
present  the  capital  has  not  been  raised,  and  the  project  seems  to  have 
been  temporarily  abandoned.  This  line  would  also  partly  depend 
on  the  carriage  of  salt,  which  is  produced  at  Haichow,  but  there 
would  also  be  a large  passenger  traffic.  A railway  between  Pukow 
and  Kwachow  is  also  under  consideration,  and  would  possibly  save 
the  future  of  Chinkiang. 

TROUBLES  IN  OPERATION. 

In  the  railways  in  operation  in  this  portion  of  the  Empire  there 
has  been  considerable  financial  trouble.  The  greatest  railway  in 
this  section  at  present  is  the  Peking-Hankow  Railway,  the  northern 
section  of  the  great  trunk  line  north  and  south  through  China,  in 
which  American  interests  were  once  involved  and  which  represents 
the  most  important  railway  element  in  the  country.  This  railway 
has  been  in  operation  for  about  five  years. 

All  authorities  seem  to  agree  that,  though  it  reports  a profit  of 
about  $4,000,000  local  currency,  or  about  $1,680,000  gold,  per  year, 
it  is  deteriorating  very  rapidly  in  physical  upkeep.  The  Chinese 
railway  autliorities  claim  that  this  deterioration  is  due  largely  to  the 
fact  that  the  foreign  interests  which  formerly  owned  it  knew  it  was 
to  be  transferred  to  the  Chinese  and  neglected  it,  with  the  result 
that  now  its  upkeep  is  more  difficult  and  expensive  than  it  should  be. 
The  railway’s  accounts  show  no  proper  allowance  for  deterioration, 
and  the  showing  of  a profit  is  more  or  less  a matter  of  unscientific 
bookkeeping,  the  impairment  of  the  railway  plant  resulting,  in  fact, 
in  dividends  from  the  railway’s  capital. 

The  general  opinion  is  that  a financial  reorganization  will  be 
necessary  to  put  the  railway  upon  a safe  and  satisfactory  basis. 
That  this  reorganization  is  coming  seems  beyond  doubt  and  is  only 
a matter  of  time.  It  is  almost  certain  to  lead  to  very  important 
developments  in  the  reorganization  of  railways  in  this  portion  of 
China  generally,  and  will  have  a marked  influence  upon  the  course 
of  Chinese  railroading  for  years  to  come. 


RAILWAY  SiTIIATlOlI  IM  CHINA. 


15 


SUMMARY  OP  SYSTEM. 

The  railways  in  operation  in  the  Shantung- Yaiigtze  system  aggre- 
gate 2,038  miles,  with  680  miles  under  construction  and  3,094  miles 
surveyed  or  projected.  A list  of  these  lines  follows: 

IN  OPERATION  OS  UNDER  CONSTRUCTION. 

Peking-Hankow  ( Belgian-Climese,  formerly  American)  : Gauge,  4 feet  8i 
inches;  755  miles;  complete  and  in  operation  for  about  five  years. 

Lianghsiang-Hsientuli  ( Belgian-Chinese,  formerly  American)  : Gauge,  4 feet 
8i  inches ; 12  miles ; branch  of  the  Peking-Hankow  to  local  coal  mines. 

Linliho-Choukechuang  (Belgian-Chinese,  formerly  American)  : Gauge,  4 feet 
8i  inches ; 10  miles ; branch  of  the  Peking-Hankow  line  to  local  mines. 

Kaoyihsien-Lintscheng  coal  mines  (Chinese)  : Gauge,  4 feet  8i  inches;  11 
miles;  branch  of  the  Peking-Hankow  to  local  mines. 

Kaifong-Honan  (Belgian-Chinese)  : Gauge,  4 feet  8i  inches;  120  miles;  via 
Chengchon ; contracted  by  the  Compagnie  Generale  des  Chemins  de  Fer  et  Tram- 
ways de  Chine ; now  in  Chinese  control. 

Tsaochuang  coal  mines-Yihsin-Taierchuang  (Chinese)  : Gauge,  4 feet  8^ 
inches ; 31  miles ; now  connects  with  Tsingtau-Pukow  system. 

Tangho-Chinwangtao  (British)  : Gauge,  4 feet  8J  inches;  6 miles;  Chinese 
Engineering  & Mining  Co. ; branch  from  Tientsin-Hsinminfu  or  Mukden  line  to 
reach  coal  mines. 

Peking-Mentoiikou  (Chinese)  : Gauge,  4 feet  84  inches;  164  miles;  in  full 
operation. 

Shihchiachuang-Taiyuan,  Shansi  (French)  : Gauge,  meter;  151  miles;  pur- 
chased by  French  syndicate  from  Russo-Chinese  Bank. 

Tientsin-Yihsin  Railway;  north  half  of  Tientsin-Nanking  or  Pukow  system 
(German)  : Gauge,  4 feet  84  inches;  about  400  miles;  half  completed;  operated 
to  Tsinan. 

Yihsin-Pukow  Railway ; south  half  of  Tientsin-Nanking  system  : About  200 
miles;  half  completed  and  operated  to  Linghwaikwan,  about  94  miles  from  the 
Yangtze;  German  ownership. 

Tsingtau-Yihsin  (German)  : Gauge,  4 feet  84  inches;  200  miles;  Shantung 
Railway  Co.  operating  the  whole. 

Taokou-Tsechou  (Chinese);  Gauge,  4 feet  84  inches;  130  miles;  worked 
by  Peking  syndicate. 

Tsingtau-Pukow  (German)  ; Gauge,  4 feet  84  inches;  256  miles;  Shantung 
Railway  Co. ; single  line,  with  earthwork  to  accommodate  double  line ; opened 
to  traffic  to  Tsinan  in  November,  1910. 

Changtien-Poshanhsien  (German):  Gauge,  4 feet  84  inches;  28  miles; 
Shantung  Railway  Co. ; single  line,  with  earthwork  to  accommodate  double 
line;  branch  of  German  Shantung  system. 

Hsuchow'fu-Chinkiangpu  Railway : 120  miles ; construction  of  this  line  has 
been  begun  from  Chinkiangpu  and  is  proceeding  slowly. 

Honan-Sianfu,  Shensi : Gauge,  4 feet  84  inches ; 240  miles ; concession  for- 
merly held  by  foreign  interests,  now  being  worked  by  Chinese;  embankment 
completed  for  about  25  miles,  to  point  west  of  Sinan,  in  Honan  Province. 

SURVEYED  OE  PBOJECTED. 

Chefoo-Weihsien  Railway : 170  miles ; this  line  will  connect  Chefoo  with  the 
Shantung  Railway;  surveys  completed  but  funds  lacking. 

Chengting-Tehchow  Railway : 170  miles ; this  will  connect  the  Peking- 
Hankow  Railway  at  Chengting  and  Tientsin-Pukow  Railway  at  Techowni,  in 
northern  Shantung  Province;  projected  by  the  Board  of  Communications  and 
surveys  completed;  construction  uncertain. 

Singyang-Pungyang ; Projected  by  the  Board  of  Communications  at  Peking, 
east  from  the  Peking-Hankow  Railway  at  Singyang  to  the  Tientsin-Pukow  line 
at  Fungyang,  100  miles ; survey  completed  in  1910 ; no  funds  at  hand. 

Kaifong-Haichow  (Chinghai)  Railway:  70  miles;  intended  to  provide  an  out- 
let to  the  sea  for  the  great  trunk  line  from  west  to  east,  in  addition  to  the 
existing  line  from  Honan  to  Kaifong ; delayed  from  lack  of  funds. 

Tatungfu-Fiichofu  (Tiingpii)  Railway:  450  miles;  this  railway  will  connect 
the  north  and  center  of  Shansi  Province  with  the  Shansi  Railway  at  Tungkwan, 


16 


RAILWAY  SITUATION  IN  CHINA. 


south  of  Puchowfu,  on  the  Hoangho  or  Yellow  River ; only  the  construction  of 
the  section  from  Taiyuan  to  Hingyaohsien  (60  miles)  appears  to  be  in  im- 
mediate contemplation,  and  work  is  delayed  from  lack  of  funds. 

Sianfu-Lanchow  Railway ; 380  miles ; this  line  is  in  the  progi-am  of  the 
Roard  of  Communications  tor  the  completion  of  the  survey  in  1911,  but  no 
report  of  what  has  been  done  is  yet  to  be  had ; line  to  be  extended  to  Ilifu,  as 
noted  below. 

Lanchow-Ilifu  Railway;  1,250  miles;  also  referred  to  as  the  Kansu  New 
Dominion  line;  projected  by  the  Board  of  Communications  at  Peking  as  a Gov- 
ernment undertaking  and  surveyors  have  been  instructed,  to  commence  w^ork  at 
once. 

Kaomi-Ichow,  connecting  Ichow  with  Tsingtau-Tsinan  Railway  (Chinese)  : 
40  miles;  delayed  from  lack  of  funds. 

Lintscheng-Taierchuang : Takes  place  of  projected  Hantschuan-Ihsien  line 
connecting  north  and  south  railway  with  the  Grand  Canal  at  Shantung-Kiangsu 
border ; 48  miles ; survey  in  progress. 

Icheng-Talchow,  Kiangsu  (Chinese)  : Gauge,  standard;  48  miles;  from  the 
Yangtze  to  Taichow,  in  Kiangsu,  with  branches  to  connect  salt  depot  at 
Shierhwei. 

Kwachow-Haichow,  via  Tslngkiangpu.  for  transportation  of  .salt : 100  miles ; 
from  the  Yangtze  north  through  Kiangsu  to  the  sea ; preliminary  surveys  made, 
but  no  funds  in  hand. 

YANGTZE  VALLEY  SYSTEM. 

The  Yangtze  Valley  railways  in  China  are  in  some  respects  the 
most  interesting  problems  in  the  country.  The  country  they  serve,  or 
are  planned  to  serve,  is  in  most  respects  the  richest  portion  of  the 
Empire,  and  under  ordinary  circumstances  would  be  the  most  prom- 
ising. However,  most  of  the  railways,  both  those  constructed  and 
those  proposed,  parallel  the  Grand  Canal  north  and  south  and  the 
Yangtze  Eiver  east  and  west.  The  result  is  that  the  vast  mass  of 
freight  is  still  carried  in  native  boats,  and  will  continue  to  be  so  car- 
ried in  the  future,  in  spite  of  railway  facilities.  Only  rich  cargoe.s, 
like  silks,  or  cargoes  of  material  that  can  be  handled  to  advantage 
by  machinery  or  by  standard  equipment,  like  coal  or  ore,  can  be 
counted  upon  by  the  railways. 

For  example,  the  Shanghai-Nanking  Railway,  one  of  the  best 
equipped  of  the  new  lines  in  the  country,  well  built  and  well  started 
by  foreign  promoters,  has  found  it  impossible  to  make  money  so  far, 
because  of  the  competition  of  Yangtze  River  steamers.  The  Shang- 
hai-Hangchow  line,  while  apparently  enjoying  a good  business  and 
in  a position  to  prosper,  has  been  in  the  public  eye  for  .some  time  as  a 
result  of  troubles  in  the  Chekiang  Railway  Co.  and  allied  interests, 
and  questions  of  management  have  so  far  mixed  the  situation  that  the 
exact  financial  position  of  the  railway  is  uncertain,  although  ad- 
mitted losses  are  great.  It  is  announced  from  Peking  that  as  a result 
of  the  general  unfavorable  situation  in  the  company  the  Government 
is  to  take  over  the  line  and  carry  it  forward  as  a Government  enter- 
prise. 

HANKOW-SZECHWAN  LINE. 

These  and  other  conditions  have  disturbed  the  general  development 
of  railway  enterprise  in  this  portion  of  China,  and  to  some  extent  the 
proposed  construction  of  a raihvay  line  connecting  Hankow  and 
Chengtu  and  Chungking,  the  gi’eat  cities  of  the  Province  of  Szechwan, 
that  immense  inner  empire  of  China,  which  is  one  of  the  richest  por- 
tions of  the  world,  shut  otf  from  the  rest  of  the  world  by  the  rapids 
of  the  Yangtze  and  without  any  railway  connections  whatever. 


RAILWAY  SITUATION  IN  CHINA. 


11 


The  exact  status  of  this  great  enterprise  is  not  known.  Capital  has 
been  raised  and  spent  upon  it  to  the  amount  of  about  $7,250,000  gold. 
During  1910  work  was  pushed  upon  a portion  of  it  with  great  energy. 
In  spite  of  financial  difficulties  and  changes  in  plans,  which,  in  Feb- 
ruary, 1911,  led  to  the  rejDort  that  the  company  had  decided  to  aban- 
don its  work  upon  the  main  section  then  under  construction  near 
Ichang  and  to  transport  its  materials  and  transfer  its  energies  to  the 
immediate  construction  of  a railway  from  Chengtu,  the  capital  of 
the  Province,  to  Chungking,  its  principal  commercial  center,  the 
work  has  been  pushed  with  considerable  energy,  as  may  be  realized 
from  the  announcement  that  during  most  of  1910  from  10,000  to  15,000 
coolies  were  engaged  in  construction  work  on  the  line  out  of  Ichang. 

Contracts  were  let  for  a tunnel  6,200  feet  long,  about  50  miles  from 
Ichang;  for  two  tiinnels  of  about  1,000  feet  each  about  25  miles 
from  Ichang;  for  50  bridges,  great  and  small;  and  for  the  construc- 
tion of  a station  building  and  various  terminal  and  administrative 
buildings  at  Ichang.  Vast  quantities  of  cement,  rails,  and  other  ma- 
terials, and  several  locomotives  and  other  rolling  stock  were  bought. 
The  road  itself  has  been  nearly  completed  for  about  20  miles,  includ- 
ing a tunnel  of  700  feet  about  15  miles  from  Ichang.  During  1911 
work  is  to  be  done  on  a larger  scale  than  ever. 

PRESENT  AVORK  ON  lANE. 

A correspondent  under  date  of  April  4,  1911,  reports: 

The  total  distance  now  under  construction  is  al)ont  100  nfiies.  There  are  at 
present  nearly  50,000  coolies  at  work  on  the  10  sections  between  Ichang  and 
Wanhsien.  The  rails  being  laid  down  on  The  main  line  are  of  SS-ponnd 
weight,  13  ties  to  the  rail.  Trains  are  being  run  twice  daily  between  the 
wharf  at  Ichang  and  the  rail  end  for  transporting  material.  The  station  at 
Ichang  is  now  nearing  completion.  Three  storerooms  were  completed  some 
time  ago  and  they  are  now  in  use.  The  head  otflce  buildings  are  now  under 
construction.  All  the  bridges  and  drains  in  the  first  section  are  completetl, 
and  those  for  the  other  section  are  being  prepared.  Over  40  construction  cars 
of  Chinese  construction  are  already  in  use  carrying  material,  and  in  the  work- 
shops passenger  cars  are  being  rapidly  built.  First  and  second  class  cars  are 
already  built  and  are  ready  for  use.  The  machine-shop  plant  is  about  to  be 
put  into  the  newly  built  workshops.  From  the  American  Bridge  Co.,  of  New 
York,  eleven  100-foot  spans  have  been  ordered,  and  delivery  will  be  made  in 
May.  Another  order  tor  200.000  drums  of  cement  has  been  given  out.  Two 
million  superficial  feet  of  Oregon  pine  logs  and  planks  have  been  contracted  for. 

CONTRACTS  PLACED CONNECTING  LINES. 

Announcement  is  made  that  the  company  has  placed  a contract 
for  two  specially  constructed  steamers  and  a number  of  200-ton 
lighters  for  the  transportation  of  materials  for  the  line  noiv  build- 
ing and  for  the  construction  of  the  Chengtu-Chiingking  line  up  the 
Yangtze  and  through  the  famous  rapids.  The  Chengtu-Chungking 
line  is  to  be  constructed  at  once  if  the  company  can  raise  more 
money,  which  it  expects  to  be  able  to  do,  as  the  Chengtu-Chungking 
line  offers  fine  financial  prospects  from  the  very  beginning  because 
of  the  wonderfully  rich  country  it  will  serve.  Prospects  are  that 
work  on  this  system  will  be  rapidly  advanced  in  spite  of  engineering 
difficulties  of  considerable  magnitude  and  involving  great  exjiense. 

Part  of  the  construction  of  this  great  Szechwan  system  is  to  be  paid 
for  from  the  proceeds  of  the  $30,000,000  Hukuang  loan,  which  was 


18  RAILWAY  SITUATION  IN  CHINA. 

proposed  by  British,  American,  German,  and  French  interests  and 
which  was  brought  before  the  Chinese  authorities  by  representatives 
of  the  jiowers  at  the  beginning  of  the  present  year  and  recently  con- 
summated. From  Ichang  to  Wanhsien  the  Chinese  company  is  "build- 
ing the  line,  and  from  Wanhsien  to  Chungking  a road  is  to  be  con- 
structed by  a new  local  company.  The  line  from  Chungking  to 
Chengtu  now  about  to  be  undertaken  by  the  Szechwan  Railway  Co. 
would  form  the  last  portion  of  the  system  connecting  the  capital  of 
this  great  Province  with  the  sea,  thus  carrying  out  the  original  pur- 
pose of  the  projected  line,  but  by  a different  route.  It  is  estimated 
that  the  line  from  Hankow  to  Chengtu  Avill  cost  over  50,000,000  taels, 
or  about  $32,000,000  gold.  Of  this  about  one-sixth  has  been  raised 
and  expended  upon  the  work. 

SMALLER  LINES  DELAYED. 

The  construction  of  smaller  lines  and  connections  of  the  larger 
lines  in  this  central  portion  of  China  seems  to  be  almost  entirely 
suspended.  The  reason  in  almost  every  case  appears  to  be  a lack  of 
funds  on  the  part  of  the  Chinese  promoters  and  an  unwillingness  to 
place  loans  abroad.  Thus,  in  the  case  of  the  proposed  line  from 
Nanking  or  Wuhu  to  the  sea  at  Ningpo  by  way  of  Hangchow,  a 
company  was  formed  at  Wuhu  some  years  ago  with  the  title  “Anhwei 
Railway  Co.,”  for  the  purpose  of  constructing  a line  from  Wuhu  to 
the  town  of  Kwangtechou,  near  the  frontier  of  Chekiang  Province. 
Work  was  comiflenced  in  1900.  Up  to  date  all  that  has  been  accom- 
plished is  the  construction  of  the  embankment  as  far  as  the  village 
of  Wanchih,  some  30  miles  from  Wuhu,  and  the  construction  of  two 
or  three  single-track  bridges  in  that  section.  The  site  of  the  future 
terminus,  on  the  foreign  settlement  at  Wuhu,  has  not  even  been  filled 
in.  A few  trolley  lines  and  dumping  wagons,  with  some  piles  of 
sleepers,  are  the  only  indication  that  railway  works  are,  or  have 
been,  in  progress.  No  machinery,  rolling  stock,  or  other  requisites 
of  a railway  have  been  imported,  and,  so  far  as  known,  none  have 
been  ordered.  The  progress  made  in  1910  is  represented  by  the 
dumping  of  several  thousand  cubic  yards  of  filling  on  the  site  of  the 
terminus  at  Wuhu.  As  regards  the  future,  more  activity  is  promised, 
owing  to  the  return  to  China  of  Lord  Li  Ching-fang,  formerly 
Chinese  Minister  in  London,  and  now  vice  president  of  the  Board  of 
Communications.  Lord  Li  was  one  of  the  original  promoters  of 
this  line.  It  is  promised  that  the  line  will  be  completed  to  Wanchi, 
a distance  of  70  li,  or  about  24' miles,  during  the  current  year. 

A proposal  was  made  some  years  ago  to  extend  the  Nanking  City 
Railway  to  Wuhu,  but  lately  nothing  has  been  heard  of  this  sugges- 
tion. The  Anhwei  authorities  seem  favorably  disposed  toward  rail- 
ways and  the  public  appears  anxious  that  lines  should  be  built  with 
Chinese  money,  but  the  latter  does  not  appear  to  be  forthcoming  in 
sufficient  quantities. 

The  Ningpo  end  of  the  general  Nanking-Hangchow-Ningpo  enter- 
prise seems  to  be  in  a state  similar  to  that  of  the  northern  portion. 
A large  amount  of  earthwork  was  completed  soon  after  the  enterprise 
was  first  inaugurated,  the  total  amounting  to  about  50  miles.  Space 
in  the  foreign  settlement  at  Ningpo  (Kiangpeian)  was  cleared  for  the 
station,  out  the  entire  enterprise  seems  to  be  held  in  abeyance  be- 


railway  SITtJATlCl^  IN  CHINA. 


19 


Cause  of  the  Chekiang  company’s  financial  condition.  The  authori- 
ties of  the  company  are  making  no  announcements  as  to  plans  or 
prospects. 

KIUKIANG-NANCHANG  LINE. 

The  exact  situation  of  the  railway  from  Kiukiang  to  Nanchang, 
the  capital  of  Kiangsi  Province,  is  doubtful.  The  line  was  sur- 
veyed in  1905,  but  actual  construction  work  did  not  commence  until 
1908.  In  April,  a year  ago,  the  Chinese  Customs  Commissioner 
reported  that  the  chief  engineer  had  declared  the  first  section  of  32 
miles  so  near  completion  that  there  was  no  reason  why  it  should  not 
have  been  opened  last  summer.  At  that  time  all  the  grading  was 
finished,  track  had  been  laid  for  6 miles,  and  most  of  the  bridges  were 
completed.  However,  financial  traubles,  which  have  interfered  with 
the  progress  of  the  work  from  the  beginning,  set  in  during  the  sum- 
mer and  the  work  was  greatly  retarded.  In  June,  1910,  the  com- 
pany was  reported  to  have  borrowed  2,000,000  taels  from  native 
banks,  but,  as  has  generally  been  the  case  with  loans  contracted  for 
from  native  sources,  the  money  was  not  forthcoming  in  a way  to 
enable  rapid  work  to  be  done.  Trains  are  running  over  a short 
distance  of  the  road  only,  general  operation  and  more  extended  use 
being  prevented  by  incomplete  bridging.  The  work  generally  has 
all  but  stopped  because  of  financial  troubles. 

The  rails  and  fittings  for  this  road  were  manufactured  by  the 
Hanyang  Iron  & Steel  Works  at  Hankow.  The  bridge  steel,  cars, 
locomotives,  and  considerable  other  material  are  from  the  United 
States.  The  staff,  until  very  recently  at  least,  was  entirely  Japanese. 
The  line  passes  through  exceptionally  easy  country  for  railroad 
building,  but  involves  the  construction  of  several  notable  bridges, 
among  them  being  a seven-span  bridge  about  miles  from  Kiu- 
kiang and  a truss  bridge  of  about  800  feet  50  miles  from  Kiukiang. 
The  road  taps  an  exceptionally  rich  country,  from  which  great 
quantities  of  tea  and  other  agricultural  products  are  exported. 
Between  comparatively  low  cost  and  prospective  unusual  earning 
power,  the  immediate  financial  success  of  the  enterprise  is  expected, 
but  the  difficulty  of  securing  so  large  a capital  from  native  sources 
is  likely  to  embarrass  the  management  for  some  time. 

So  far  as  can  be  learned,  there  is  at  present  little  or  no  intention 
to  build  a line  from  Soochow  to  Hangchow  as  had  been  planned. 
It  seems  to  be  realized  that  a line  almost  alongside  the  Grand 
Canal  is  hard  to  make  pay.  At  one  time  there  vras  talk  of  a small 
branch  line  from  Soochow  to  Changshuhsien,  a city  about  17  miles 
to  the  northeast  of  that  city,  but  of  late  nothing  has  been  said  about 
it.  The  officials  of  that  district  are  friendly  toward  railways.  The 
consulate’s  correspondent  reports  that  the  people  use  the  present  line 
largely. 

FINANCIAL  PROBLEMS. 

In  this  part  of  the  country  the  financial  difficulties  of  lines  already 
constructed  are  becoming  serious.  The  Shanghai-Nanking  line 
is  losing  money  rapidly.  Its  manager  claims  that  the  imposition 
of  likin,  or  internal-revenue  tax,  upon  goods  passing  through  cer- 
tain stations  forces  the  shipment  of  freight  by  the  Yangtze  Kiver. 


20 


RAILWAY  SitUAtlON  IN  CHINA. 

where  there  are  fewer  tax  stations,  and  therefore  lower  charges. 
But  it  appears  also  that  the  railway  is  troubled  by  faulty  traffic 
conditions.  While  the  line  travels  through  populous  and  industrious 
regions  and  connects  two  of  the  most  important  commercial  districts 
of  China,  two  great  drawbacks  are  to  be  noted:  First,  the  line  is 
too  expensively  built  (it  cost  120,000  taels,  or  $85,00P,  per  mile) 
and  the  capital  charge  per  unit  of  traffic  is  too  large;  second,  the 
line  runs  along  navigable  canals  and  rivers  that  can  carry  goods  at  a 
much  cheaper  rate.  Only  by  the  development  of  traffic  in  light, 
valuable  goods,  in  the  transportation  of  which  time,  safety,  and  ease 
of  handling  are  elements,  and  in  the  development  of  a heavy  pas- 
senger traffic,  can  it  look  for  success.  This  road  has  announced  in 
the  past  few  weeks  that  hereafter  no  student  tickets  between  Nan- 
king and  Shanghai  will  be  issued,  and  the  list  of  pass  holders  is  to 
be  greatly  curtailed.  The  student  tickets  were  reduced-fare  tickets 
issued  for  the  use  of  persons  attending  educational  institutions  in 
Shanghai. 

There  is  a similar  state  of  finances  in  the  Shanghai-Hangchow 
line.  AlthougJi  the  expense  of  construction  was  comparatively  much 
less  the  competition  of  the  Grand  Canal  connections  with  Shanghai 
makes  it  difficult  for  the  line  to  pay.  For  many  years,  even  under 
modern  trade  conditions,  there  has  been  a regular  service  for  freight 
and  passengers  between  Shanghai  and  Hangchow,  Soochow,  Hu- 
chow,  and  other  Chekiang  points  by  house  boats  and  barges,  towed 
by  steam  launches.  This  is  not  so  rapid  as  a railway  service,  but  it 
was  and  is  cheap),  and  the  competition  it  forces  upon  the  railway  is 
extremely  keen. 

These  unfavorable  results  of  operating  railways  in  the  Yangtze 
Valley,  the  uncertain  course  of  railway  finance,  and  the  general 
lack  of  money  in  the  country  with  the  indisposition  of  Chinese 
gentrymen  to  resort  to  foreign  loans  for  railway  construction,  ex- 
plain the  backward  state  of  railway  enterprise  generally. 

SUMMARY  OF  SYSTEM. 

The  Yangfze  Valley  system  has  328  miles  in  operation,  300  miles 
in  actual  course  of  construction,  and  1,304  miles  surveyed  or  pro- 
jected. Details  as  to  the  various  lines  follow: 

IN  OPERATION  OB  UNDER  CONSTRUCTION. 

Sbanghai-Woosung  (British)  ; Gauge,  4 feet  8i  inches;  10  miles;  purchased 
from  Chinese;  British  and  Chinese  corporation. 

Shaiighai-Nanking  (British):  Gauge.  4 feet  81  inches;  193  miles;  via 
Chinkiang;  double  line  Shanghai  to  Soochow  (54  miles)  ; British  and  Chinese 
corporation. 

Shanghai-Hangchow  (Chinese)  : Gauge,  4 feet  81  inches;  125  miles;  Che- 
kiang Railway  Co. ; in  operation  from  Shanghai  to  Hangchow. 

Wuhu-Haugchow  (Chinese)  : Gauge,  4 feet  81  inches;  150  miles;  work 
proceeding  slowly  from  'Wuhu  to  Kwangtechou,  embankment  and  most  bridges 
being  completed  to  latter  place;  no  line  in  operation. 

Hankow-Ichang-Chengtu  line  (Chinese)  : Gauge,  4 feet  81  inches;  800  miles 
projected;  20  miles  on  Ichang-Chengtu  line  completed  and  rate  of  construc- 
tion is  being  increased;  company  has  decided  to  build  Chengtu-Chungking 
line  at  once. 

Kiukiang-Nanchang  (Chinese)  : Gauge,  4 feet  81  inches;  130  miles;  northern 
section  of  Kiangsi  Railway ; to  be  extended  to  Chian.  Nauan,  and  Shaochou, 
or  about  430  miles  in  all ; about  35  miles  practically  completed. 


BAILWAY  SITUATION  IN  CHINA, 


21 


SUEVEYED  OE  PEOJECTED. 

Hangchow-Ningpo  (British)  : Gauge,  4 feet  8J  inches;  120  miles;  construc- 
tion and  control  nominally  in  hands  of  Chinese  Government ; concession 
granted  to  British  and  Chinese  corporation;  some  work  at  Ningpo  stopped  for 
lack  of  funds. 

Soochow-Changshuhsien,  branch  of  Shanghai-Nauking  system ; 16  miles ; 
construction  delayed  from  lack  of  funds. 

Soochow-Hangchow  line : Projected  line  from  Soochow,  on  Yangtze  River, 
to  Hangchow,  capital  of  Chekiang  Province ; 60  miles ; little  prospect  of  con- 
struction for  the  present. 

Pukow-Kwachow : Line  of  about  SO  miles  projected  largely  to  save  trade 
of  Chinkiaug ; realization  delayed  from  lack  of  funds. 

Cheugtu-Chungking  line:  Portion  of  the  proposed  great  Hankow-Szechwan 
system ; Chinese  ownership ; about  200  miles ; material  now  being  taken  to 
the  territory  for  immediate  construction. 

KWANGTUNG  SYSTEM. 

There  are  three  features  of  the  railway  situation  in  the  south 
coast  country  of  China  that  merit  attention.  The  first  relates  to 
the  slow  advancement  of  the  work  upon  the  Canton-Hankow  Rail- 
way, the  great  north  and  south  line  which  is  to  connect  the  Yangtze 
Valley  at  Hankow  and  all  the  great  country  between  with  the  ocean 
at  Hongkong.  The  second  is  the  construction  of  a large  number  of 
small  lines  and  connections  in  and  about  the  lower  end  of  this  great 
trunk  line,  which  are  to  connect  Canton  and  Hongkong  and  Macao, 
as  well  as  all  the  industrial  centers  of  the  lower  Chinese  coast.  The 
third  is  the  proposed  system  of  railways  in  the  Provinces  of  Kwang- 
tung  and  Kwangsi  to  connect  the  Canton-Hankow  sj'^stem  and  the 
smaller  railways  of  the  south  coast  country  with  the  interior  and 
eventually  with  the  railways  on  the  border  to  the  west  and  south. 

The  construction  of  the  southern  section  of  the  Canton-Hankow 
Railway,  the  system  once  owned  by  an  American  syndicate,  is  pro- 
ceeding upon  a sectional  basis.  As  a result  of*  the  agitation  following 
the  transfer  of  the  northern  section  of  the  Canton-Peking  line  to 
Belgian  interests,  the  American  syndicate  sold  its  interests  to  a 
Chinese  syndicate  which  proposed  to  construct  the  line  upon  a sec- 
tional basis;  that  is,  the  Chinese  interested  in  the  enterprise  in  each 
Province  traversed  by  the  line  are  to  furnish  the  capital  for  the  sec- 
tion of  the  line  in  such  Province,  There  have  been  some  modifica- 
tions of  the  proposition,  but  in  general  this  plan  is  being  followed. 
However,  the  northern  portion  of  the  line  has  been  advanced  by  the 
need  of  serving  certain  coal  and  iron  mines,  connecting  them  with 
water  transportation  for  Hankow,  and  the  southern  section  of  the 
general  line  has  been  advanced  by  local  Kwangtung  Province  inter- 
ests and  the  fact  that  a portion  of  the  system  was  already  constructed 
and  in  operation.  The  middle  section,  the  trunk  line,  drags  along 
without  actual  progress.  Probably  something  will  be  done  now  that 
the  Hukuang  loan  has  been  concluded. 

PROGRESS  OF  ROADS  IN  NORTHERN  SECTION. 

The  situation  as  regards  the  northern  section  and  the  small  rail- 
ways constructed  to  serve  the  coal  and  other  mines  is  indicated  in  a 
general  way  by  a letter  from  a correspondent  at  Changsha,  who 
writes,  under  date  of  March  13,  1911 : 

The  Chuchow-Changsha  section  of  the  Yuehhan  Railway,  which  was  com- 
menced in  August,  1909,  has  made  fair  progress.  Most  of  the  rails  have  been 


22 


RAILWAY  SITUATION  IN  CHINA, 


laid,  though  the  grading  has  not  yet  been  quite  completed ; but  little  ballasting 
has  been  done  and  August  next  is  the  nearest  date  on  which  light  trains  may 
be  abie  to  run  through.  It  is  not  expected  that  the  line  will  be  ready  for  the 
transixirt  of  coal,  for  which  the  stretch  is  primarily  intended,  until  next  year. 
The  Pinghsiang-Chuchow  line  runs  regularly  and  seems  sufficiently  good  for 
the  purpose  for  which  it  is  intended.  It  is  intended  to  commence  work  on  the 
Changsha-Yochow  section  of  the  Yuehhan  line  during  this  year,  probably  in 
three  places.  Regulations  for  the  purchase  of  ground  are  out,  the  prices  are 
fixed,  and  landowners  are  urged  to  accept  as  small  sums  as  possible  in  order 
to  obviate  the  raising  of  a foreign  loan.  Payment  in  shares  may  be  accepted. 
South  from  Chuchow  to  Chenchow  a detailed  survey  will  be  commenced  this 
year.  It  is  expected  to  complete  the  Yochow-Chenchow  section  within  five 
years.  Local  feeling  is  entirely  in  favor  of  building  the  railways  without  for- 
eign assistance. 

THE  SOUTHERN  SECTION. 

Of  the  extension  of  the  existing  railway  at  Canton  north  to  con- 
nect with  the  Hunan  section  of  the  through  system  about  the  same 
report  as  to  progress  may  be  made.  Correspondents  report  that 
the  line  is  open  to  traffic  at  present  (in  March,  1911)  up  to  Kouwong- 
shek,  58  miles  from  Canton.  The  end  of  the  track  is  about  9 miles 
farther,  to  which  point  the  road  is  to  be  opened  soon.  Grading  and 
bridging  between  there  and  mile  79  is  about  completed,  except  for 
one  small  hill  that  the  company  has  been  unable  to  purchase  because 
of  “Feng  Shui  ” objections,  but  prospects  are  for  an  early  settle- 
ment. Between  miles  79  and  85  the  gTading,  while  light,  can  not  be 
done  at  present,  because  of  objections  by  the  natives.  The  smaller 
bridges  between  miles  79  and  85  are  all  complete,  however,  and  the 
two  larger  ones  are  well  under  way,  so  that  seven  or  eight  months 
should  find  them  ready  for  track.  Bridging  and  grading  between 
miles  86  and  112  is  at  least  75  per  cent  complete,  and  will  be  ready 
for  track  in  six  months.  Grading  and  bridging  is  going  on  between 
miles  112  and  130  and  should  be  completed  within  12  months.  Con- 
tracts have  just  been  let  for  all  work  between  miles  130  and  140, 
though  work  between  these  points  probably  will  require  two  years. 
This  will  bring  the  line  to  Shiukwan,  the  largest  town  on  the  North 
River  and  where  there  is  considerable  good  coal.  The  line  has  been 
located  as  far  as  mile  180,  and  a party  is  now  in  the  field  finishing 
the  location,  the  line  in  Kwangtung  Province  to  be  approximately 
210  miles  long. 

Had  the  company  been  able  to  enforce  its  rights,  the  line  would 
be  now  at  least  to  mile  130,  but  the  opposition  of  the  villagers  is 
strong,  and  as  a result  the  company  is  greatly  embarrassed.  If  the 
management  of  the  company  is  able  to  compel  the  natives  to  sell  the 
right  of  way  and  not  interfere  with  the  construction  of  the  line  and 
the  directors  allow  the  engineer  in  chief  to  go  ahead,  the  line  will 
undoubtedly  be  to  Shiukwan  in  two  years.  The  country  along  this 
line  is  not  thickly  populated  and  the  company  will  get  little  busi- 
ness; in  fact,  until  the  line  receives  through  business  from  the  north, 
it  is  very  doubtful  if  it  can  jiay. 

The  nature  of  this  opposition  is  characteristic  of  many  portions 
of  China.  For  example,  gentrymen  have  opposed  the  connection  of 
the  Hankow-Canton  line  as  far  as  completed  with  the  Kwongkow 
road,  a line  serving  a neighboring  district,  on  religious _ grounds. 
In  the  construction  of  the  line  north  from  Canton  in  particular  the 
natives  have  been  exceedingly  troublesome,  though  much  of  the 


RAILWAY  SITUATION  IN  CHINA. 


23 


same  sort  of  opposition  is  encountered  in  other  portions  of  the 
Kwangtung  and  lower  coast  country.  It  may  safely  be  said  that 
popular  support  of  railways  is  lacking  in  many  portions  of  South 
China,  and  in  some  cases  the  opposition  of  the  mass  of  people  is 
so  strong  that  the  construction  of  lines  already  in  hand  and  for  which 
money  and  materials  are  fully  provided  is  seriously  interfered  with 
and  may  be  indefinitely  delayed. 

PROSPECTS  IN  KWANGSI. 

The  situation  in  the  Province  of  Kwangsi  and  in  Kwangtung  in 
its  relation  to  the  development  of  traffic  between  the  Hongkong- 
Canton  field  and  the  interior  of  these  Provinces  and  the  Province 
of  Yunnan  and  eventually  of  the  connection  of  Plongkong  and 
Canton  with  the  French  railways  coming  up  from  the  south  in  the 
border  system  and  with  British  railways  from  Burma  is  uncertain. 
The  economic  aspect  of  this  situation  in  its  relation  to  both  French 
and  British  connections  to  the  south  and  the  importance  of  such 
railways  in  connecting  Hongkong  with  India  and  Siam  has  been 
indicated  in  previous  reports  from  this  consulate  general. 

The  early  construction  of  the  through  lines  is  doubtful,  while  the 
construction  of  small  local  lines  that  later  may  be  incorporated  into 
parts  of  trunk-line  systems  is  progressing.  The  line  of  immediate 
development  at  present  seems  to  be  along  West  River  and,  practi- 
cally, is  measured  by  progress  or  no  progress  in  the  propositions  to 
connect  Wuchow,  on  West  River,  with  Canton,  and  to  connect 
Nanning  and  other  up-river  points  that  can  not  be  reached  by  water 
except  in  comparatively  small  boats  with  Wuchow,  thus  not  only 
connecting  them  with  Canton  but  affording  them  direct  river  con- 
nection with  Hongkong.  Among  the  Chinese  there  is  general  appre- 
ciation of  the  benefits  of  such  connections  and  officials  concerned 
seem  to  be  favorable  to  the  construction  of  the  lines,  but  both  officials 
and  Chinese  capitalists  concerned  seem  disposed  to  insist  that  these 
lines  shall  be  constructed  and  operated  by  Chinese  capital  without 
any  foreign  connection  whatever.  The  gentrymen  so  far  have  in- 
sisted upon  retaining  the  entire  matter  in  their  own  control,  the  result 
being  that  because  of  their  inability  to  raise  money  and  to  manage 
such  an  enterprise  nothing  has  been  done. 

HISTORY  OF  WORK  IN  KWANGSI. 

The  general  situation  in  this  portion  of  China  is  indicated  by  the 
history  of  the  railway  movement  in  Kwangsi  Province.  In  1907  a 
company  was  formed  to  undertake  railway  construction  all  over  the 
Province,  the  capital  to  be  $15,000,000  Hongkong  currency  in  shares 
of  $5  each,  so  as  to  enable  all  classes  of  the  population  to  join  in  the 
enterprise.  Up  to  the  present,  however,  only  $300,000  have  been 
subscribed,  and  the  company  is  to  be  wound  up  and  the  money 
returned  to  the  subscribers. 

In  1909  the  provincial  government  planned  to  build  a railway  from 
Kweilin,  the  provincial  capital,  to  Changchow,  a town  on  the  frontier 
of  the  Hunan  Province,  a distance  of  110  miles,  and  3,000,000  taels 
were  set  aside  and  engineers  of  an  English  concern  were  engaged  to 
survey  the  road.  The  survey  lasted  from  July  to  December,  1909, 


24 


RAILWAY  SITUATION  IN  CHINA. 


and  the  estimated  cost  of  the  line  was  6,000,000  taels,  or  about 
$4,250,000  gold.  In  consequence  the  government  decided  to  form  a 
semiofficial,  semicommercial  company,  the  government  to  subscribe 
half  the  capital  and  the  merchants  to  provide  the  remainder.  How- 
ever, the  merchants,  although  the  shares  cost  only  $5  each,  have  not 
yet  been  able  to  raise  their  part.  This  company  is  called  the  Kwei- 
chun  Official  and  Commercial  Eailway  Co.,  and  the  line  is  intended 
to  join  a branch  railway  to  be  built  by  the  Hunan  gentrymen  from 
the  frontier  to  the  town  of  Hongchow,  where  it  will  connect  with  the 
Canton-Hankow  trunk  line. 

OTHER  LINES  PROJECTED. 

In  1910  another  commercial  railway  company,  called  the  Ng  Yap 
Railway  Co.,  was  formed  to  build  a railway  from  Wuchow  to  Nan- 
ning, a distance  of  360  miles,  but  with  no  definite  plan  or  capital. 
Chinese  were  employed  to  survey  the  road  as  far  as  Konghau,  about 
33  miles  from  Wuchow,  and  they  reported  that  this  branch  could  be 
built  for  about  $2,000,000.  A prominent  Chinese  capitalist  took  the 
matter  in  hand  and  agreed  to  raise  the  necessary  funds,  but  the 
latest  reports  do  not  promise  much  financial  support. 

In  February,  1911,  a surveying  party,  sent  by  the  Government  at 
Peking,  under  a Chinese  civil  engineer,  proceeded  into  the  Province 
of  Yunnan,  its  mission  being  to  study  a projected  line  from  Mengfsze 
to  Nanning,  and  thereafter  to  survey  the  projected  line  from  Nan- 
ning to  Wuchow.  In  November,  1909,  another  party  'sent  by  the 
Central  Government  surveyed  a line  direct  from  Kweilin  to  Nanning 
via  Lieuchowfu.  However,  nothing  further  has  developed. 

In  Yunnan  a number  of  surveys  have  been  made  to  the  west,  the 
“ Far  West  ” of  China.  Engineers  are  at  work  on  a route  for  a line 
north  of  Yunnan  to  Szechwan  and  to  connect  with  the  projected 
lines  in  Hunan.  The  Yunnan  line  will  probably  be  built  to  Suifu  or 
Luchow,  on  the  upper  Yangtze,  a distance  of  about  450  miles. 

THE  COAST  LINES. 

Among  smaller  lines,  both  in  operation  and  proposed,  there  is 
more  promise  of  advancement  and  more  actually  done.  The  Sun- 
ning Railway,  organized,  surveyed,  constructed,  and  operated  under 
a Chinese  capitalist  who  learned  railroading  and  made  his  capital 
in  Oregon  and  Washington,  is  being  rapidly  extended  and  will  be 
open  to  Kongmoon,  on  the  Pearl  River,  in  July.  It  has  been  in 
operation  to  Kungyik  for  about  a year  and  a half.  The  line  to 
Kongmoon  is  completed  with  the  exception  of  bridges. 

It  is  promised  also  that  the  Canton-Kowloon  Railway  will  be 
opened  in  August  or  September.  The  British  section  of  21  miles 
was  completed  and  opened  in  October,  1910,  and  a portion  of  the 
Chinese  section  was  opened  to  traffic  three  months  later.  The  com- 
pleted through  line  wdl  be  operating  by  the  last  of  September.  The 
line,  particularly  the  British  section,  has  been  expensively  built,  the 
latter  averaging  $250,000  gold  per  mile,  for  it  passes  through  difficult 
country.  The  colony  of  Hongkong,  w'hich  has  built  the  line  as  a pro- 
tection to  its  present  trade  and  as  a means  of  extending  its  trade  in 
the  future,  is  paying  $520,000  Hongkong  currency,  or  ab<5:iat  $218^000 


RAILWAY  SITUATION  IN  CHINA. 


26 


gold,  out  of  its  revenue  for  the  support  of  the  road,  over  and  above  its 
earnings,  for'  the  current  year.  The  entire  Canton-Kowloon  line 
parallels  the  Pearl  Eiver  between  Hongkong  and  Canton.  The  trip 
by  water  takes  about  five  and  a half  to  six  hours,  or  by  night  a short 
and  comfortable  night  trip.  In  neither  passenger  nor  freight  traffic 
between  here  and  Canton  is  the  situation  promising.  However,  in 
through  traffic  with  the  Canton-Hankow  system,  when  completed, 
will  its  reason  for  existence  be  shown.  Its  chief  justification  is  in 
the  promise  it  gives  of  connecting  foreig-n  trade  at  Hongkong  with 
a great  portion  of  the  interior  of  China. 

The  extension  of  the  Swatow-Chouchowfu  Railway  to  connect 
with  the  Canton-Kowloon  Railway  is  thought  to  be  something  more 
than  a possibility.  The  formation  of  a company  for  that  purpose  is 
announced  from  Swatow.  The  company  is  to  start  with  a capital  of 
$20,000,000  ($8,400,000  gold)  divided  into  2,000,000  shares  of  $10 
($4.20  gold)  each,  to  construct  a line  from  Slienchun,  on  the  Canton- 
Kowloon  line,  running  via  Tanshui,  Haifong,  Lufung,  Huilai, 
Puning,  and  Kityang  to  Chouchowfu,  a distance  of  over  200  miles. 
This  enterprise  will  give  considerable  portions  of  the  coast  railway 
connections  with  the  Hongkong  trade  territory,  and  will  be  a long 
link  in  the  proposed  line  to  connect  Foochow  and  Canton. 

CANTON-MACAO  AND  FUNGTATJEN-SAIWAN  LINES. 

A concession  was  recently  granted  Leung  Wan  Kwai,  a Canton 
merchant,  for  the  construction  of  the  Canton-Macao  Railway.  He 
has  been  ordered  to  proceed  to  Canton  at  once  and  commence  the 
work  at  an  early  date.  The  source  of  his  capital,  which  must  be 
considerable,  is  not  stated,  but  it  was  announced  that,  because  of  its 
strategic  importance,  the  Chinese  Government  is  to  construct  this 
railway,  and  the  viceroy  of  Canton  has  been  instructed  to  make  the 
survey  as  soon  as  possible  in  order  that  work  may  be  commenced  at 
an  early  date.  Wliich  plan,  if  either,  is  to  be  followed  is  uncertain, 
but  there  seems  to  be  good  reason' to  expect  that  something  definite 
toward  the  accomplishment  of  this  enterprise  will  be  developed  dur- 
ing the  current  year. 

It  , is  said  that  the  scheme  for  building  a railroad  between  Fung- 
tauen,  on  the  West  River,  15  miles  east  of  Wuchow,  and  Saiwan,  in 
the  Hohuen  district,  is  to  be  put  into  effect.  Saiwaan  has  rich  coal 
mines  and  the  road  is  to  be  built  by  the  coal  company  operating  the 
mines.  It  will  connect  the  mines  with  river  traffic  on  the  West 
River,  or,  in  other  words,  with  cheap  freight  connections  with  Canton 
and  Hongkong.  Proclamations  have  already  been  issued  by  the 
officials  commanding  the  people  to  sell  the  right  of  way  to  the  road, 
and  the  route  has  been  surveyed.  This  roacl  will  be  of  great  com- 
mercial value  to  the  Province,  as  Hohuen  is  one  of  the  most  produc- 
tive farming  sections  of  Kwangsi.  At  present  the  only  means  of 
transportation  is  the  Hohuen  River,  which  is  very  small  and  has 
numerous  rapids  that  make  it  impossible  to  run  launches. 

Tlie  Government  at  Peking  has  taken  special  interest  in  the 
Kwangtung-Kwangsi-Yunnan  railway  situation.  Very  recently  it 
was  announced  formally  from  Peking  that  the  Throne  has  acceded 
to  the  request  of  the  Ministry  of  Communications  to  send  surveyors 
and  engineers  to  Kwangsi  Province  to  have  the  routes  suitable  for 
the  construction  of  railways  carefully  surveyed. 


26 


EAIDWAY  SITUATION  IN  CHINA. 


SUMMARY  OF  SYSTEM. 

The  Kwangtung  system  embraces  314  miles  in  operation,  384  miles 
in  actual  course  of  construction,  and  1,943  miles  surveyed  or  projected. 
Details  of  the  various  lines  follow: 

IN  OPEKATION  OR  UNDER  CONSTRUCTION. 

Canton-Hankow  (Chinese)  : Gause,  4 feet  <S4  inches;  170  miles;  part  of  main 
north  and  south  trunk  line  720  miles  long;  60  miles  of  line  in  operation  and  90 
miles  of  embankment  completed ; work  delayed  by  opposition  of  villagers  to 
railway  construction ; some  sections  included  in  list  of  projected  lines. 

Hunan  Railway  (Chinese)  ; Part  of  Hankow-Canton  system,  or  otherwise 
known  as  Chuchow-Pinghsiang  line;  77  miles;  line  in  operation  from  Piug- 
hsien  coal  mines  to  Chuchow  since  February,  1911 ; line  from  Chuchow  to 
Changsha  nearly  complete  and  will  be  in  operation  in  September,  1911. 

Canton  (Sanshui)  (Chinese)  : Gauge,  4 feet  84  inches;  32  miles;  double  line 
Canton  to  Fatshan  (10  miles)  ; bought  from  American  Development  Co.;  part 
of  Canton-Hankow  sj-stem. 

Swatow-Chouchowfu  (Chinese)  ; Gauge,  4 feet  84  inches;  25  miles;  to  he 
extended,  by  a company  formed  recently,  to  Sheklung  on  the  Canton-Rowloon 
Railway,  about  200  miles. 

Sunning  Railway  (Chinese)  : 55  miles;  open  from  Kungyik  to  Kongmoon 
(35  miles)  in  July,  1911;  Chinese  capital  and  constructed  by  Chinese. 

Amoy-Changchow  (Chinese)  ; Gauge,  4 feet  inches;  30  miles;  about 
one-third  completed  in  January,  1911,  and  operated  so  far  as  completed. 

Canton-Kowloon  (Chinese  and  British)  ; Gauge,  4 feet  84  inches;  111  miles; 
21  miles  in  British  territory;  British  and  Cliinese  corporation;  about  60  miles 
in  operation ; whole  line  to  be  in  operation  in  June,  1911. 

Kiukiang-Nanchang  Railway:  First  section,  32  miles,  in  partial  operation; 
130  miles  in  all ; progress  delayed  by  lack  of  funds. 

SURVEYED  OR  PROJECTED. 

Chuchow-Hengchow  line  (Chinese):  Section  of  Canton-Hankow  line;  100 
miles;  detailed  surveys  to  be  commenced  this  year;  entire  system  from  Hankow 
to  Hengchow  to  be  c()nii)leted  within  live  years. 

Changsha-Yocliow  line  (Chinese):  Part  of  Canton-Hankow  system;  120 
miles;  work  to  be  commenced  in  three  places  during  1911;  will  be  completed  in 
three  years. 

Hengchow-Shiuchow  line;  Part  of  Canton-Hankow  system;  225  miles;  sur- 
vey completed;  work  to  be  completed  within  five  years  as  lines  from  north 
and  south  are  brought  together ; probably  to  be  financed  entirely  by  the  Hukuang 
loan. 

■\Vuchow-Nanning  Railway : Surveys  complete  from  Wuchow  to  Konghow, 
near  Nanning;  360  miles;  surveys  being  continued  under  instructions  of  Gov- 
ernment at  Peking  in  connection  with  the  Nanning-Mengtsze  line;  no  funds 
yet  available. 

Kweilin-Changchow  (Kwangsi)  Railway;  110  miles;  surveys  were  made  in 
1909,  and  provincial  government  subscribed  3.000,000  taels  as  half  estimated 
cost ; merchants  unable  to  raise  the  rest,  and  construction  is  delayed. 

Yunnan-Szechwan  Railway : 450  miles ; two  American  engineers  and  a corps 
of  Chinese  students  have  been  engaged  in  surveying  this  line  during  1910 ; 
prospects  of  immediate  construction  uncertain ; will  probably  touch  the  Yangtze 
at  Suifu  or  Luchow. 

Chouchowfu-Canton  line;  To  extend  from  Chouchowfu  terminus  of  the 
Swatow  Itailway  to  Sheklung  or  Shenchun  on  the  Canton-Kowloon  line  by  new 
company  recently  formed  with  ,|8,400,000  gold  capital ; about  250  miles. 

Swatow-Chenghiii  line:  Light  railway  to  connect  Swatow  with  various  fruit 
districts ; enterprise  is  said  to  have  plenty  of  local  backing  and  will  be  realized ; 
about  15  miles. 

Macao-Canton  (Fatshan)  Railway  (on  the  Canton-Samshui  line)  : 75  miles; 
a concession  lor  the  line  was  granted  to  a Chinese  merchant  syndicate  in  1911, 
with  the  understanding  that  the  work  should  commence  at  once. 

Fungtauen-Saiwan  Railway  (Chinese)  : IJne  to  connect  coal  mines  at  Sai- 
wan  with  steam  traffic  on  the  West  River  near  Wuchow;  30  miles;  work  to  be 
commenced  at  once. 


RAILWAY  SITUATION  IN  CHINA. 


2Y 


SOUTHWEST  BORDER  SYSTEM. 

The  situation  in  the  border  country  between  the  more  settled  coun- 
try of  Kwangtung  and  Kwangsi  and  parts  of  Yunnan  and  the 
French  Burmese  and  Tibetan  borders  represents  more  promise  than 
realization.  During  the  past  year  the  French  railway  to  Yunnan 
was  completed.  This  line,  known  as  the  Yunnan-Anam  Eailway, 
extends  from  Laokai,  on  the  China-Tonkin  frontier,  to  Yunnan, 
the  capital  of  the  Province,  a distance  of  about  310  miles.  It  was 
opened  to  traffic  in  April,  1910.  The  natives  have  been  quick  to 
realize  what  the  railway  means  to  them,  and  already  they  are  pro- 
jecting a number  of  branch  lines,  among  them  being  a light  line  from 
Mengtsze-Pichichai  to  the  Kochiu  tin  mines,  a distance  of  about  30 
miles.  This  line  ‘will  have  an  abundance  of  traffic  and  will  probably 
be  profitable  at  once. 

Of  the  projected  lines,  the  most  interesting  are  the  lines  planned 
to  connect  the  Chinese  north  and  south  system  and  the  French  and 
British  lines  to  the  south.  The  connection  with  the  French  lines  to  the 
south  at  Yunnan  is  not  only  practicable,  but  would  be  realized  in  a 
very  short  time  if  the  Chinese  would  grant  concessions  to  the  French 
interests  involved.  This  proposed  line  of  development  runs  both  to 
the  north  from  Yunnan  to  Luchow,  Avitli  the  plan  of  connecting 
Avith  the  Chinese  east  and  west  lines  along  the  Yangtze  and  thus  Avith 
the  northern  system,  and  also  to  the  northeast  to  connect  the  French 
lines  with  the  Kwangtung  system,  and  thence  to  the  systems  of  the 
north. 

ACTIVITY  or  FRENCH  INTERESTS. 

The  French  raihvay  interests  in  Indo-China  are  reaching  out  in 
all  directions  for  the  development  of  their  system.  It  has  been  an- 
nounced in  the  press  of  the  Far  East  that  the  Siamese  Government 
has  definitely  decided  to  build  the  connection  betAveen  its  own  lines 
and  the  French  lines  into  Saigon,  as  well  as  to  the  south,  connecting 
with  Singapore,  by  means  of  a French  loan.  This,  of  course,  means 
the  further  extension  of  China’s  railway  connections  through  the 
Yunnan  Eailway.  Owing  to  the  fact  that  this  French  line  to  Yun- 
nan ends  in  a sort  of  cul-de-sac,  it  has  not  been  profitable,  and  a 
concession  Avhich  will  enable  the  French  interests  to  open  up  addi- 
tional country  to  feed  their  line  is  urgently  asked. 

However,  there  are  similar  requests  from  British  interests  to  the 
west  for  concessions  to  enable  British  interests  to  open  connections 
with  India  and  Burma  and  with  India  through  Tibet.  These  con- 
nections would  be  of  international  importance.  The  engineering 
difficulties  are  said  to  be  numerous  and  all  but  insurmountable.  The 
connection  from  Szechwan  Province  through  Tibet  is  proposed  with 
the  idea  that  it  can  follow  the  caravan  and  trade  routes  from  Chung- 
king west  to  Batang  south  along  the  caravan  routes  now  used  to 
transport  goods  from  India  to  Tibet.  This  caravan  service  connects 
with  a special  steamer  sailing  at  stated  periods  from  Glasgow  with 
British  goods  for  this  trade.  The  light  railway  from  Bahmo  to 
Tengyueh  is  a portion  of  this  transportation  system.  The  Tibet  route 
seems  to  be  offered  as  an  alternative  route  to  the  connection  betAveen 
Tengyueh  and  Yunnan. 


28 


RAILWAY  SITUATION  IN  CHINA, 


The  actual  prospects  of  the  British  interests  seeking  the  conces- 
sions for  the  roads  either  by  way  of  Tibet  or  by  way  of  the  more 
southern  route,  are  uncertain.  Native  press  dispatches  report  that 
the  viceroj^s  of  Yunnan  and  Szechwan  are  endeavoring  to  raise  money 
from  native  sources  to  construct  the  railway  into  Tibet  as  a Chinese 
undertaking.  It  appears  that  these  enterprises  are  being  urged  for- 
ward in  earnest.  That  the  actual  construction  of  these  lines  is 
difficult  is  well  understood  but  it  is  merely  a matter  of  expense,  not 
of  feasibility.  Probably  one  of  the  greatest  series  of  tunnels  in  the 
world  will  be  required  to  connect  the  valleys  of  the  Bramaputra  and 
the  Yangtze.  The  engineering  on  the  French  railway  into  Yunnan 
is  said  to  be  highly  illustrative  of  the  most  modern  accomplishments 
in  this  line. 

CONNECTIONS  WITH  KWANGTUNG. 

The  other  general  system  of  connections  proposed  is  between  these 
railways  from  the  south  and  the  Kwangtung  system.  The  French 
interests  have  proposed  a connection  between  the  Yunnan  line  and 
Nanning  to  connect  with  the  Wuchow-Nanning  line  discussed  in 
connection  with  proposed  developments  in  the  Kwangtung  division. 
The  Chinese  authorities  have  so  far  refused  a concession  to  foreign 
interests  and  are  working  on  the  proposition  themselves.  The  Board 
of  Communications  through  local  authorities  plans  a line  from  Nan- 
ning to  connect  with  the  Yunnan  line  at  Mengtsze.  Surveys  for  this 
line  are  being  made.  The  route  will  be  about  400  miles  in  length 
and  latest  reports  seem  to  indicate  that  the  proposed  route  is  by 
Kaihwa  and  Kuangnan  and  thence  down  the  river  valley  to  Nanning. 
While  the  route  presents  no  great  difficulties,  apparently,  the  road 
is  likely  to  be  expensive.  No  provision  for  the  necessary  capital  has 
so  far  been  made. 

COUNTRY  TO  BE  OPENED. 

While  many  of  the  plans  of  these  frontier  district  railways  are 
more  or  less  uncertain  and  the  immense  distances  involved  and  the 
great  engineering  difficulties  would  make  the  cost  of  construction 
very  high,  it  is  to  be  considered  that  much  of  the  territory  to  be 
opened  by  such  roads  is  very  promising.  The  Yunnan-Szechwan 
Eailway,  for  example,  will  connect  the  Province  of  Szechwan,  prob- 
ably the  richest  district  in  China,  with  the  sea,  and  at  the  same 
time  it  will  open  up  mineral  country  of  great  richness.  The  various 
portions  of  Yunnan  contain  deposits  of  tin,  antimony,  iron,  and  coal, 
which  are  being  worked  profitably  and  on  an  increasing  scale  even 
with  present  transportation  facilities.  The  agricultural  possibilities 
of  the  country,  largely  a tableland  at  a comfortable  altitude,  are 
almost  without  limit.  The  climatic  and  scenic  attractions  of  Yun- 
nan and  portions  of  Szechwan  are  very  great  and  in  time  will  doubt- 
less draw  a large  tourist  traffic. 

Much  of  the  country  to  be  traversed  by  these  frontier  lines  is 
almost  mediaeval  in  its  condition.  The  glens  of  the  borderland  of 
Yunnan  are  often  held  by  chieftains  under  a s’pecies  of  feudal  tenure. 
It  is  said  that  in  parts  the  crossbow  is  still  the  most  advanced  of 
weapons.  In  many  districts  the  railway  surveyors  are  the  first 
white  men  seen  by  natives.  The  distribution  of  some  of  China’s  sur- 
plus millions  into  the  comparatively  lightly  populated  Yunnan 


RAILWAY  SITUATION  IN  CHINA. 


29 


country  would  open  up  gi’eat  possibilities  of  development  and  at  the 
same  time  would  relieve  the  pressure  of  population  in  more  congested 
districts.  The  trade  from  this  country  now  consists  largely  of  shiji- 
ments  of  tin,  antimony,  and  other  mine  products,  and  various  agri- 
cultural products  outward,  and  of  cotton  goods  and  yarn  and  various 
foreign  commodities  inward;  but  all  trade  in  this  jjortion  of  China 
is  hampered  by  lack  of  transportation  facilities.  The  people  of  the 
Province,  as  a rule,  are  favorable  to  railways,  quickly  take  advantage 
of  those  constructed,  and  are  quite  willing  to  help  in  the  construction 
of  others. 

YUNNAN-SZECHWAN  LINE. 

The  Yunnan-Szechwan  line  seems  to  be  one  of  the  projected 
lines  that  is  in  the  way  of  immediate  construction.  The  capital 
raised  for  its  construction  is  said  to  exceed  12,000,000  taels,  or  about 
$7,250,000  gold.  An  engineering  party  under  the  direction  of  two 
American  engineers,  composed  largely  of  Chinese  engineers  trained 
in  China  and  Japan  and  Chinese  engineering  students,  has  been 
engaged  for  several  months  in  the  survey  of  the  route.  How- 
ever, the  exact  route  is  yet  to  be  determined,  its  financing  has  not  yet 
been  arranged,  and  the  date  of  commencement  of  construction  is  still 
uncertain.  Considering  the  hesitancy  shown  in  some  phases  of  the 
HankoAv-Chengtu  Railway  enterprise,  it  is  possible  that  this  line 
from  the  south,  connecting  Szechwan  with  the  sea  through  French 
territory,  will  be  the  first  to  tap  the  immensely  rich  country  about 
the  upper  reaches  of  the  Yangtze  and  its  sources.  Such  a develop- 
ment would  be  certain  to  have  important  results  in  the  course  of 
trade  in  that  portion  of  China,  a trade  now  almost  wholly  British. 
In  any  event,  sooner  or  later  this  immense  trade  will  be  opened  up 
and  by  more  than  one  route  and  probably  by  more  than  one  national 
interest.  At  present,  however,  it  is  the  determination  of  the  Chinese 
people  and  officials  to  construct  the  railways  within  China  them- 
selves. 

SUMMARY  OF  SYSTEM. 

There  is  only  one  railway  in  operation  in  this  frontier  portion  of 
China.  This  and  the  projected  lines  may  be  listed  as  follows: 

IN  OPERATION  OR  UNDER  CONSTRUCTION. 

Laokai-Yunnan  (French)  : Gauge,  meter;  291  miles;  in  operation  to  Yun- 
nan ; will  be  extended  to  Luchow  if  concession  can  be  obtained. 

SURVEYED  OR  PROJECTED. 

Szechwan-Tibet-India  line:  About  850  miles;  projected  by  a British  organi- 
zation at  Shanghai,  which  has  asked  for  a concession  from  the  Government  at 
Peking. 

Langson-lamgchow  Railway  (French)  : Gauge,  meter;  46  miles;  proposed 
French  extension  of  the  Hanoi-Langson  line;  it  is  proposed  to  continue  this 
line  to  Nanning  (150  miles)  ; nothing  has  been  done  because  of  the  refusal  of 
the  Chinese  Government  to  grant  a concession. 

Mengtsze-Nanning  line : Projected  by  Peking  Government ; 400  miles ; now 
being  surveyed  by  Government  engineers. 

Bhamo-Tengyiieh  (Tienmien)  Railway:  Gauge,  2 feet  6 inches  or  meter; 
123  miles;  preliminary  surveys  have  been  completed. 

Mengtsze-Kochiu : Light  line  to  connect  tin  mines  with  Tunnan-Anara 
French  line. 


30 


RAILWAY  SITUATION  IN  CHINA. 


Tengyueh-Yiinnan : Line  projected  by  Chinese  to  connect  with  British  lines 
in  Burma ; owing  to  great  engineering  difflculties  it  is  doubtful  when  the  latter 
could  be  constructed ; about  400  miles. 

Yunnan-Szechwan  Railway : Line  projected  by  Chinese  authorities  to  con- 
nect Yunnan  and  French  system  with  the  Yangtze  Valley  system  at  Chungking, 
about  500  miles;  surreys  now  being  made  under  the  direction  of  an  American 
engineer. 


FOREIGN  RAIEWAT  MATERIALS. 

At  present  there  is  an  impression  among  foreigners  in  and  about 
China  that  the  opportunities  for  the  sale  of  foreign  goods  in  China 
are  vastly  overestimated.  It  is  undoubtedly  the  experience  of  for- 
eigners interested  in  many  lines  that  the  amount  of  money  expended 
in  seeking  trade  is  out  of  proportion  to  the  business  obtained.  The 
possibilities  of  an  immense  country  like  China  are,  of  course,  almost 
beyond  limit,  and  this  is  especially  true  of  railways  in  a country  hav- 
ing an  area  of  4,250,000  square  miles  and  only  about  6,500  miles  of 
railway  track,  iniile  realization  of  business  among  such  possibili- 
ties is  slow  and  uncertain,  and  the  expense  of  representation  and  can- 
vassing is  fast  and  certain,  it  is  doubtful,  in  view  of  the  great  possi- 
bilities, if  anyone  who  has  embarked  upon  the  enterprise  of  sharing 
in  China’s  import  business  is  justified  in  changing  front  and  aban- 
doning the  field;  and  it  is  certainly  unreasonable  and  practically 
impossible  for  one  not  actively  in  the  field  to  secure  a reasonable  and 
proper  share  of  the  business. 

So  far  as  official  returns  show,  the  imports  of  railway  materials  into 
China  proper  are  decreasing.  The  returns  of  the  Chinese  imperial 
maritime  customs  shows  that  the  imports  of  railway  material  were 
valued  at  $5,264,032  in  1905,  $9,151,874  in  1906,  and  $10,139,678  in 
1907.  That  seems  to  have  been  the  high  record,  for  in  1908  the 
imports  were  valued  at  $8,447,103,  in  1909  at  $8,328,533,  and  in  1910 
it  is  estimated  that  the  record  of  1909  was  exceeded  by  about  6 per 
cent. 

While  there  is  some  uncertainty  as  to  whether  or  not  materials 
imported  on  Government  account  have  been  uniformly  recorded  by 
the  customs,  it  is  evident  that  the  business,  although  at  all  times 
worth  care  and  attention,  has  not  been  phenomenal  or  in  any  way 
indicative  of  the  extravagant  claims  as  to  its  magnitude  and  im- 
portance. 

PROSPECTS  FOR  TRADE. 

The  figures  demonstrate  that  while  the  railways  under  operation 
in  China  offer  some  opportunity  for  American  and  other  foreign 
trade,  the  promise  of  imports  from  abroad  in  this  line  is  vastly  over- 
estimated. The  most  important  imports  of  railway  materials  into 
China  in  1910  were  largely  for  railways  already  established  and  in 
operation,  old  roads  that  are  being  reconstructed.  This  is  par- 
ticularly true  of  the  work  being  done  in  the  Manchurian  system 
in  the  widening  of  the  gauge  and  preparing  the  roads  for  heavier 
traffic.  Other  railways  in  the  country  have  deteriorated  and  are 
now  about  to  import  new  materials.  Nevertheless,  the  amount  of 
business  actually  in  sight  is  a very  doubtful  quantity. 

As  to  the  railways  projected,  they  will  doubtless  in  time  be  con- 
structed and  probably  must  be  constructed  with  foreign  capital. 


RAILWAY  SITUATION  IN  CHINA, 


31 


The  foreigners  furnishing  the  capital  will  doubtless  follow  the  ex- 
ample of  other  foreigners  and  insist  upon  the  use  of  materials  from 
their  own  country;  in  other  words,  trade  follows  the  bonds.  IVhere 
roads  are  to  be  built  by  Chinese  capital,  and  materials  are  imported 
from  abroad,  the  business  invariably  goes  to  the  country  with  men 
on  the  spot  looking  for  business.  There  are  now  few  Chinese  en- 
gineers in  a position  to  plan,  construct,  and  equip  a railway  without 
foreign  advice  and  help.  That  advice  and  help  is  given  by  foreign 
experts  who  are  on  the  ground,  and  this  practically  means  that  the 
rolling  stock  and  general  equipment  of  these  lines  Avill  be  from  the 
country  of  the  engineer  consulted.  In  practical  operation,  this  busi- 
ness is  generally  placed  on  specifications  furnished  by  interested 
experts,  and  the  selection  of  an  expert  is  generally  equivalent  to  the 
placing  of  the  business. 

riNxANCING  BY  COIMBTNATIONS, 

Tlie  chief  feature  of  the  railway  situation  in  China  from  the 
standpoint  of  builders  and  suppliers  of  material  is  the  need  of 
financing  the  A^arious  undertakings.  As  above  indicated,  the  pre- 
vailing sentiment  among  Chinese  is  for  construction  by  Chinese 
capital,  but  the  more  enlightened  officials  and  countrymen  are  com- 
mencing to  understand  that  this  is  impossible,  directly,  at  least.  It 
seems  probable  that  the  solution  lies  in  a combination  of  Chinese 
interests  and  foreign  railway  material  suppliers,  whereby  the  Chinese 
Avill  retain  control  of  their  railway  and  the  foreigners  will  furnish 
capital  and  materials  and  take  their  pay  in  the  railway’s  securities. 
This  sort  of  a combination  is  being  emploAnd  successfully  bj^  several 
foreign  interests,  notably  Germans  and  Japanese,  in  the  construction 
of  many  industrial  and  poAver  plants  and  in  various  enterprises. 

GAUGE  AND  CONDITION. 

The  railways  of  China  haA^e  been  constructed  A^eiy  largely  without 
regard  to  a national  system.  Each  road  is  more  or  less  local,  not 
only  in  its  interests  and  support,  but  in  its  physical  characteristics. 
Where  interests  other  than  Chinese  have  impressed  themselves  upon 
the  railways,  they  have  insisted  upon  following  their  OAvn.  ideas  and 
plans,  their  own  gauge,  their  OAvn  rails  and  materials,  and  their 
own  railway  methods.  The  result  is  that,  from  a physical  stand- 
point, China  has-  not  what  in  any  sense  may  be  called  a homogeneous 
and  national  railway  system.  The  welding  of  the  many  lines  now 
constructed,  or  being  constructed,  into  one  homogeneous  system,  or 
even  into  several  homogeneous  systems,  Avill  be  exceedingly  difficult 
because  of  differences  in  gauge.  As  a rule,  China  has  adopted  the 
British  gauge  (4  feet  84  inches),  but  several  important  lines  are  of 
a different  gauge.  For  example,  the  new  line  in  Yunnan  has  used 
the  meter  gauge,  and  the  Kwangsi  authorities  appear  to  have  deter- 
mined to  break  away  from  what  is  supposed  to  be  the  standard,  and 
have  either  the  meter  or  a narrower  gauge.  What  the  conversion  of 
these  lines  to  a standard  Chinese  gauge  will  cost  may  be  appreciated 
from  the  expenditures  Japan  is  finding  necessary  in  widening  the 
gauge  of  its  Tokyo-Shimonoseki  line,  This  will  mean  business  in 


32 


RAILWAY  SITUATION  IN  CHINA. 


the  future,  but  prevents  business  on  a standardized  scale  for  the 
present. 

Some  of  the  more  recently  constructed  roads  are  in  fine  physical 
condition.  In  fact,  most  of  them  have  been  constructed  upon  too 
costly  a scale  for  the  traffic  they  are  likely  to  get. 

CHINESE  RAILWAY  MATERIALS. 

Chinese  manufacture  of  railway  equipment  and  material  has  ad- 
vanced to  an  extent  not  appreciated  in  most  parts  of  the  world.  The 
American  industrial  world  has  been  somewhat  startled  by  reports 
showing  that  Chinese  pig  iron  has  gone  into  some  of  the  greatest 
steel  undertakings  in  the  United  States,  not  only  on  the  Pacific  coast, 
but  also  in  the  Eastern  States.  The  iron  ore  and  iron  and  steel 
products  shipped  abroad  and  those  used  in  China  come  from  the 
Hanyang  Steel  & Iron  Works  at  Hankow.  An  outline  of  the 
annual  report  of  the  institution  furnished  the  writer  shows  that 
the  output  of  pig  iron  in  1910  was  130,000  tons.  Exports  to  Shang- 
hai and  other  Chinese  ports  amounted  to  14,034:  tons,  to  Japan  29,167 
tons,  and  to  America  15,100  tons,  a total  of  58,301  tons.  The  total 
shipments  of  rails  and  fastenings  during  the  year  were  33,248  tons, 
about  5,000  tons  more  than  in  the  preceding  year.  A new  blast 
furnace  was  opened  in  May,  1910.  The  output  of  iron  ore  at  the 
Tayeh  mines  was  303,076  tons. 

These  manufactured  railway  materials  have  gone  directly  into 
Chinese  railways  and  at  a price  based  upon  a low  manufacturing 
cost,  for  the  output  of  the  Hanyang  concern  is  based  upon  a cost  of 
pig  iron  of  about  $7  gold  per  ton,-  as  compared  with  about  $12  in 
Birmingham,  Ala.,  or  about  $15  in  Pittsburg.  It  is  evident  that  the 
extension  of  this  plant,  now  the  subject  of  negotiation  with  the  Gov- 
ernment at  Peking,  means  that  China  can  take  care  of  itself  in  the 
more  ordinary  varieties  of  railway  materials. 

Nevertheless  there  is  now  a great  field  for  railway  materials  of 
many  sorts  in  China,  and  there  will  be  an  immense  market  in  the 
near  future  when  present  conditions  in  railway  construction  in 
China  are  overcome.  The  equipment  of  the  new  railways  with  actual 
railway  materials,  with  bridges,  shops,  machine  plants,  stations,  and 
station  appliances,  and  all  the  modern  patented  railway  equipment, 
will  offer  an  immense  field  for  foreign  enterprise  and  foreign 
industry. 


o 


